Benzinga | Mar 8, 2021 11:09AM EST

Cinedigm Shares Are Trading Higher After Acquiring Streaming Technology Platform Company FoundationTV

* Cinedigm Corp (NASDAQ: CIDM) has reached an agreement to acquire direct-to-consumer streaming technology, artificial intelligence, machine learning, and data analytics platform company FoundationTV. The financial terms of the transaction were not disclosed.

* The FoundationTV streaming platform was founded in 2013 by a team of computer and data scientists from Apple Inc (NASDAQ: AAPL), Oracle Corp (NYSE: ORCL), NEC, and Yahoo, enabling highly personalized streaming services on a global scale. The company co-developed the Matchpoint technology platform that currently powers Cinedigm's portfolio of streaming channels.

* Cinedigm plans to tightly integrate the FoundationTV and Matchpoint technology platforms and their respective software engineering teams into a new Indian-based division, Cinedigm India. The new division will be based in Kolkata, India, and will serve as its engineering, research, and development hub for video streaming technology. FoundationTV's engineering team will join Cinedigm under the arrangement.

* Additionally, the Cinedigm India team will also begin developing a new, branded global "umbrella" service for showcasing Cinedigm's portfolio of over 20 branded streaming channels and tens of thousands of hours of video content. The company plans to enable different subscription plans directly from Cinedigm, in App Stores, and select global distribution partners.

* FoundationTV has also developed a proprietary AI-based recommendation engine for highly dynamic personalized experiences, subscriber engagement maximization, and high-quality user experience.

* FoundationTV founders Sudipta Ghorui and Sudeept Bhatnagar will assume leadership roles and oversee the Cinedigm India operations.

* Cinedigm's cash and cash equivalents amounted to $26.2 million as of December 31, 2020.

* Price action: CIDM shares are up 24.3% at $1.35 on the last check Monday.