You On Demand & Seven Stars Announce Strategic Investment
Transaction includes a $10 million investment from Sun Seven Stars
NEW YORK/PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or "YOD"), a leading Video On Demand ("VOD") service provider in China , delivering Hollywood movies & premium content to TV and mobile screens, and Bruno Wu's Sun Seven Stars Media Group Limited (SSS), one of the largest private media and investment conglomerates in China, have reached a definitive agreement on the previously announced investment proposal from SSS.
The transaction, which was unanimously approved by both companies' Boards of Directors, is expected to close December 2015 , subject to customary approvals, including approval by holders of a majority of the outstanding shares of YOD common stock as well as other customary closing conditions. YOU On Demand's largest shareholders including Executive Chairman Xuesong Song and Chairman Shane McMahon have pledged to vote in favor of the transaction.
For a more detailed summary of the material provisions of the strategic investment, see YOU On Demand's current report on Form 8-K that will be filed with the U.S. Securities and Exchange Commission ("SEC") at www.sec.gov .
In addition, YOD intends to file with the SEC a preliminary proxy statement and a definitive proxy statement and all other relevant materials in connection with the proposed transaction in order to obtain the necessary stockholder approvals at YOD's Annual Meeting. The proxy statement and other relevant materials (when they become available), and any other documents filed by YOU On Demand with the SEC, may be obtained free of charge at the SEC's website at www.sec.gov .
Commenting on the transaction, Chairman of YOU on Demand Shane McMahon stated, " Bruno Wu and Sun Seven Stars have been rapidly and deftly building a next generation world-class entertainment company over the last several years. Combining YOD's capabilities with Mr. Wu's and Sun Seven Star's reputation, worldwide presence, financial strength and media relationships, will greatly enhance YOD's ability to meet the expanding needs and tastes of China's paid content consumers. We see this transaction as a perfect opportunity to position us for growth in the short and long term. We look forward to laying out in more detail YOD's mutually beneficial strategic plans, at the close of this transaction."
Source: You On Demand