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Hollywood Media Acquires CinemasOnline
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Boca-based Hollywood Media Corp., a leading provider of news, information and ticketing covering the entertainment and media industries, today announced that it has acquired U.K. based CinemasOnline, a group of leading advertising sales and data services companies focused primarily on selling internet advertising on cinema and live theatre websites in the U.K. and Ireland, for a cash purchase price of $3.45 million. Hollywood Media estimates that CinemasOnline will have approximately $5.0 million in revenue and $1.1 million in operating income during the next 12 months.
CinemasOnline's business primarily involves developing and maintaining websites for cinemas and live theatre venues in the U.K. and Ireland. These services are provided in exchange for CinemasOnline retaining the right to sell advertising on the websites. CinemasOnline currently operates websites for over 300 cinemas with over 1200 screens in the U.K., representing approximately 35% of the U.K. cinema market on a per screen basis, and over 60 cinemas in Ireland. CinemasOnline also has agreements with over 200 cinemas, live theatre and other entertainment venues to sell advertising on lobby display posters, movie brochure booklets and ticket wallets in these venues.
Mitchell Rubenstein, Hollywood Media's Chairman and Chief Executive Officer, commented, "The acquisition of CinemasOnline significantly expands our presence in Europe while complementing our existing Internet Ad Sales and Data businesses. In addition, CinemasOnline provides us with an established network for selling advertising on Hollywood.com in Europe. CinemasOnline is also expected to provide Hollywood Media with a platform to accelerate the expansion of its Data and Broadway Ticketing businesses in the U.K. and into the rest of Europe. CinemasOnline's existing relationships, which include a large base of cinemas and live theater venues, will provide Hollywood Media's
Data business with immediate opportunities to increase sales of its CinemaSource, EventSource and ExhibitorAds services. These relationships will also enhance the ability of our Broadway Ticketing division to expand its ticketing operations in the U.K."
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