Gaiam Completes Vivendi Acquisition3 Apr, 2012 By: Chris Tribbey
Say hello to Gaiam Vivendi Entertainment.
Lifestyle and fitness media distributor Gaiam completed its acquisition of Vivendi Entertainment from Universal Music Group April 3, paying $13.4 million plus net working capital to create an independent distributor with a library of more than 7,000 titles.
In 2011 Vivendi cleared more than 21 million units for more than $200 million. Gaiam expects the acquisition to add approximately $25 million in annual revenue and gross profit. The company says it controlled a 13% share of the nontheatrical market in 2011 and 14% of that market year-to-date.
“The acquisition of Vivendi Entertainment’s distribution contracts and key content relationships is an important step in our efforts to efficiently leverage Gaiam’s extensive retailer, direct-to-consumer and digital distribution channels,” said Gaiam president Bill Sondheim. “The expanded Gaiam Vivendi Entertainment platform is expected to drive near and long-term revenue growth as we leverage our increased scale to attract additional product from leading studios and other content providers.”