Chicken Soup For The Soul Entertainment Acquires Sonar Entertainment Assets For Undisclosed Sum

  • Chicken Soup For The Soul Entertainment Inc CSSE inked an agreement to acquire the film and television assets of Sonar Entertainment, Inc. The financial terms of the transaction were not disclosed.
  • Sonar is an independent television studio headquartered in Los Angeles with operations in Toronto and London. The company is credited for shows like The Shannara Chronicles (MTV/Netflix), Taboo (BBC/FX), The Son (AMC), Mr. Mercedes (DirecTV), Das Boot (Sky Europe), Hunters (Amazon Prime), Alien Xmas (Netflix) and Mysterious Benedict Society (Disney+).
  • The transaction will help Chicken Soup expand its original television content development pipeline, improve margins by increasing its IP rights ownership, launch other AVOD networks, and grow its international television production and distribution activities.
  • Screen Media will distribute Sonar's wide-ranging film and television library after the closing.
  • Chicken Soup targets over $15 million in revenue with an EBITDA contribution of $10 million from the Sonar assets. The company expects synergistic revenue and EBITDA expansion from Sonar's television content development pipeline from 2022.
  • Chicken Soup held $14.7 million in cash and equivalents as of Dec. 31, 2020.
  • Price action: CSSE shares closed higher by 5.69% at $29.52 on Thursday.
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