YOU On Demand to Form Joint Venture with Megtron Hong Kong Investment Group
Jun 06, 2016, 09:14 ET
NEW YORK, June 6, 2016 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On Demand" or "YOD" or the "Company"), a premium content Video On Demand service provider in China evolving into a global, mobile-driven, consumer management platform for both enterprises and consumers, announced today that the Company and Megtron Hong Kong Investment Group ("Megtron"), an investment company whose affiliate companies have rich resources and distribution channels in the Asian mobile terminal ODM (original design manufacturer) and telecom market, have agreed to form a Joint Venture ("JVC"), dated May 30, 2016 (the "JV Agreement)" with the intent of operating and marketing mobile apps ("Apps") from YOU On Demand, on smartphones and other mobile devices.
Under the terms of the JV Agreement, Megtron, who through its affiliates has already delivered over 50 million smartphones worldwide, will leverage its industry relationships with global telecom operators and smartphone manufacturers to support the JVC, by targeting app placement and installation on between 50-100 million smartphones and other mobile devices globally, through pre-installation, online & offline promotion installation and several app distribution channels.
The apps provided by YOU On Demand shall include video content from film and television as well as music, games, shopping, news, and social media capabilities.
Under the terms of the JV Agreement, the JVC will have registered capital of $10 million USD, which YOD and Megtron will contribute $5 million USD each, to be paid in installments. The first installment of 5 million RMB (approximately $760,000 USD) will be paid within one month of the date of incorporation of the JVC. Both YOU On Demand and Megtron, through the JVC, will jointly share App operating expenses, including server, CDN and bandwidth costs.
About YOU On Demand Holdings, Inc. (http://corporate.yod.com)
YOU On Demand (NASDAQ: YOD) is leveraging and optimizing its current operations as a premium content Video On Demand service provider in China by evolving into a global, B2B2C, mobile-driven, consumer management platform for both enterprises and consumers. By aiming to establish the world's premier multimedia, social networking and e-commerce-enabled network with the largest global effective connected user base, YOU On Demand, through this expanded, cloud-based, ecosystem of connected screens combined with strong partnerships with leading global providers, will be capable of delivering a vast array of YOD–branded products and services to enterprise customers and end-use consumers - anytime and anywhere, across multiple platforms and devices.
YOU On Demand has content distribution agreements in place with many of Hollywood's top studios including Disney Media Distribution, Paramount Pictures, NBC Universal and Twentieth Century Fox Television Distribution, Miramax, as well as a broad selection of the best content from Chinese filmmakers. In addition, the Company has governmental partnerships and licenses as well as numerous JV partnerships and strategic cooperation agreements with an array of distribution and content partners in the global new media space. YOU On Demand is headquartered in both New York, NY and Beijing, China.
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. Particular forward-looking statements in this release include statements regarding the effects of the business partnership with Megtron. 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.
CONTACT:
Jason Finkelstein
YOU On Demand
212-206-1216
[email protected]
@youondemand
corporate.yod.com
SOURCE YOU On Demand Holdings, Inc.