US film studio Desilu Studios, Inc. has bought the controlling interest in Israeli company Vonetize PLC (TASE: VNTZ). Vonetize deals in studio content streaming, distribution, protection and monetization. Desilu is buying its stake from CEO Noam Josephides (29%), CTO Oren Levy (10.2%) and director Dean Salomon (13.5%)
Under the sale agreement, the first stage of the deal, in which Desilu buys 10% of the shares for cash at a valuation of $50 million (NIS 174 million), takes place now. In the second stage, Desilu plans to list for trading in the US and to buy the remaining 44% of the controlling shareholders' shares in Vonetize through a share swap.
Josephides and Salomon will continue in their posts at Vonetize. The buyer has committed to vote in favor of employing the current controlling shareholders for a minimum period of 36 months.
Desilu was founded as Desilu Productions by husband and wife Desi Arnaz and Lucille Ball. Among its productions are "I Love Lucy", "Star Trek", and "The Untouchables". Desilu is currently estimated to be worth $2 billion. It is headed by billionaire Charles B. Hensley, and based in Los Angeles.
Desilu says that its technology arm in its Los Angeles post production facilities will work closely with Vonetize's team to innovate and fully integrate the technology, which the studio plans to include as a driving force in many facets of its operations, from direct to consumer content offering, interactive experiences and digital commerce.
"Desilu is the embodiment of the classical Hollywood Studio with a modern twist, a progressive vision on converging film, TV, technology and ancillary experiences into a whole new level of entertainment," said Josephides. "This acquisition will revolutionize a new breed of advanced content branding with uncompromising quality, experience and global reach."
"It has been my vision from day one to deliver our content direct to consumers via streaming or any other emerging and disruptive technologies," Hensley said. "Discovering Vonetize in Israel through my Exec VP Steven Posen has been a game changer for us, with Exec VP Bobbie Celler expediating and advancing our global footprint exponentially!"
Vonetize develops and distributes a VOD (video on demand) platform on which it offers content of various kinds on a subscription, one-time hire, or free basis with advertising. It operates in over 60 countries and has global partnerships with companies such as Samsung, LG, Disney, Warner Brothers, Fox, Sony, Universal and others.
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2018
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