SAN FRANCISCO and LOS ANGELES, May 14, 2013 /PRNewswire/ -- Bitzio, Inc. (OTCQB: BTZO),a mobile media and app company, has entered into a letter of intent to acquire Tech Hollywood Studios Corp ("Tech Hollywood").
Tech Hollywood is a technology provider and interactive media company committed to redefining how television programming is monetized. Tech Hollywood is developing IWantIt, a highly scalable technology platform comprised of a front-end mobile app being deployed on all major mobile platforms, and a comprehensive back-end commerce platform. IWantIt commerce-enables TV and other video content, giving mobile users the ability to "shop the screen" from their mobile device in real-time. The technology platform turns certain products within the static content of television or any video into content that can be monetized and add significant newfound revenue through the consumer's ability to purchase those products through the platform in real-time or after the show as concluded. As part of the transaction, Bitzio is also acquiring Looking Hollywood, a fashion and beauty TV show and media asset with IWantIt integration that is expected to begin production this summer.
"Over the past months we have been searching for a merger candidate that provided significant upside potential for our stakeholders," said Peter Henricsson, president and CEO of Bitzio. "Through our merger with Tech Hollywood, Bitzio will pivot into a highly focused technology and media company that enhances, and has the potential to disrupt, the current state of the entertainment industry."
Tech Hollywood was founded in 2010 by H. Thomas Tadayon, who has a successful track record of creating start-ups in technology, internet and consumer products. As founder and CEO of ThemeWare Corporation, he grew the company from 3 to 110 employees and over $40 million in sales in just over one year and led the negotiations in its sale in early 2000 for $135 million dollars. His success has resulted in appearances and write-ups in over 50 publications and news outlets including CNN, MSNBC, Fox, Business Week, PC Computing, Allure, WWD and partnerships with companies such as Intel, Oracle and Rite Aid to name a few.
"We founded Tech Hollywood to develop a new monetization model for the entertainment industry based on one simple premise: the content is the asset," remarked H. Thomas Tadayon, Chief Executive Officer of Tech Hollywood. "Through our platform, we can generate a significant amount of newfound incremental revenue for a content owner. Our vision is to redefine the manner in which content is produced, consumed and monetized by launching a platform that becomes a foundational element in connecting content to commerce. Through our merger with Bitzio, we will gain access to significant entertainment industry relationships and access to capital resources through a solid investor base that understands the transformative potential of mobile technologies in the entertainment industry."
Following the acquisition, Bitzio intends to change its name to Tech Hollywood Studios and will locate its headquarters in Los Angeles, California. Mr. Thomas Tadayon will be appointed Chief Executive Officer and Chairman of the Board of Directors. Mr. Henricsson will remain on the Board of Directors.
Bitzio will acquire Tech Hollywood in an all stock deal that will represent 80% of its shares outstanding at closing. The closing of the acquisition is contingent upon Bitzio securing certain financing arrangements and completing a capital restructuring, including converting certain of its outstanding securities and obligations, along with the authorization of additional shares and divestiture of certain operating divisions. The acquisition is expected to close during the second quarter of 2013.
About Tech Hollywood Studios Corp.
Tech Hollywood is a technology provider and interactive media company committed to redefining how television programming is monetized. Tech Hollywood is developing IWantIt, a highly scalable technology platform comprised of a front-end app for mobile devices, and a comprehensive back-end commerce platform. IWantIt commerce-enables TV and other video content, giving mobile users the ability to "shop the screen" from their mobile device in real-time. For more information on Tech Hollywood, visit www.techhollywood.com
About Bitzio, Inc.
Bitzio is a mobile media and app development company. For more information, visit www.bitzio.com.
Bitzio's full company description and important cautions regarding forward-looking statements made in this release are available at www.bitzio.com/boilerplate.
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Forward Looking Statements
This news release contains forward-looking statements within the meaning of the U.S. Private Securities Litigation Reform Act of 1995 and Canadian securities laws, including statements relating to expectations for the proposed merger with Tech Hollywood and its performance thereafter; The terms and phrases "expects", "would", "will", "believes", and similar terms and phrases are intended to identify these forward-looking statements. Forward-looking statements are based on estimates and assumptions made by Bitzio in light of its experience and its perception of current conditions and expected future developments, as well as other factors that Bitzio believes are appropriate in the circumstances. Many factors could cause Bitzio's actual results, performance or achievements to differ materially from those expressed or implied by the forward-looking statements. These risk factors and others relating to Bitzio that may cause actual results to differ are set forth in Bitzio's periodic filings with the U.S. Securities and Exchange Commission (copies of which filings may be obtained at www.sec.gov). These factors should be considered carefully, and readers should not place undue reliance on Bitzio's forward-looking statements. Bitzio has no intention and undertakes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
SOURCE Bitzio, Inc.