YOU On Demand Receives Remaining $4 Million USD Balance for Jinan Broadband Sale
NEW YORK, Nov. 13, 2013 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or the "Company"), a leading multi-platform entertainment and Video On Demand (VOD) company in China, announced today that the Company has received early payment for the remaining outstanding balance of RMB 24,000,000 (approximately $4 million USD) due in connection with the recent sale of its legacy asset, Jinan Broadband.
As previously disclosed, YOU On Demand entered into a definitive agreement to sell all of its interest in Jinan Broadband to Shandong Broadcast Network ("Shandong Broadcast") for total consideration of RMB 29,000,000, subject to customary closing conditions. The sale of Jinan Broadband to Shandong Broadcast became final on July 31, 2013.
The first payment of RMB 5,000,000 was received by YOU On Demand on July 31, 2013 with the remaining balance previously scheduled to be due in two separate payments: (i) RMB 10,000,000 by November 20, 2013, and (ii) RMB 14,000,000 by May 20, 2014.
Marc Urbach, President & CFO of YOU On Demand stated, "The additional cash provided by the sale and now early full payment for the Jinan Broadband asset will be extremely beneficial to YOU On Demand from a cash flow and working capital perspective. As previously stated, YOU On Demand reduced its investment of financial and management resources in its legacy business, Jinan Broadband, and re-deployed those assets for the benefit of YOU On Demand's core VOD businesses."
For a more detailed summary of the previously disclosed asset sale, please see the Company's Current Report on Form 8-K filed on August 6, 2013, with the Securities and Exchange Commission at www.sec.gov.
About YOU On Demand Holdings, Inc. (www.yod.com)
YOU On Demand (NASDAQ: YOD), is a leading multi-platform entertainment company delivering premium content, including leading Hollywood and China-produced movie titles, to customers across China via Subscription Video On Demand and Transactional Video On Demand. The Company has secured alliances with leading global media operators and content developers. YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal, Warner Bros., Miramax Films, Lionsgate and Magnolia Pictures, as well as a broad selection of the best content from Chinese filmmakers. The Company has a comprehensive end-to-end secure delivery system, governmental partnerships and approvals and offers additional value-added services. YOU On Demand has strategic partnerships with the largest media entities in China, a highly experienced management team with international background and expertise in Cable, Television, Film, Digital Media, Internet and Telecom. YOU On Demand is headquartered in New York, NY with its China headquarters in Beijing.
Safe Harbor Statement
This press release contains certain statements that may include "forward looking statements." All statements other than statements of historical fact included herein are "forward-looking statements." These forward looking statements are often identified by the use of forward-looking terminology such as "believes," "expects" or similar expressions, involve known and unknown risks and uncertainties. Although the Company believes that the expectations reflected in such forward-looking statements are reasonable, they do involve assumptions, risks and uncertainties, and these expectations may prove to be incorrect. You should not place undue reliance on these forward-looking statements, which speak only as of the date of this press release. The Company's actual results could differ materially from those anticipated in these forward-looking statements as a result of a variety of factors, including those discussed in the Company's periodic reports that are filed with the Securities and Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.
SOURCE YOU On Demand Holdings, Inc.