Authentic Holdings to Expand Content Library with $11 Million Deal
Strategic Acquisition of Goliath Motion Pictures
Authentic Holdings, Inc. (OTC: AHRO) recently made headlines with its ambitious acquisition of Goliath Motion Pictures Entertainment for a substantial sum of $11 million. This deal is primarily equity-based, marking a significant step for Authentic Holdings in its quest to bolster its content library.
The Value of Acquiring Content
Chris Giordano, a key figure at Authentic Holdings, emphasized the importance of this strategic move. "The relationship between Goliath and Maybacks Global Entertainment has demonstrated the value of quality content," he stated. With over 40,000 titles, the library Goliath offers contains award-winning shows and cherished classic films, such as 'In Living Color', 'The Cosby Show', and noted titles like 'Open Range' featuring Kevin Costner. This new acquisition clearly positions Authentic Holdings for future success.
Boosting Market Presence
Licensing Goliath's extensive content has already helped Authentic Holdings expand its footprint in the market. In the past six months alone, the company has grown its ad agency partnerships from 4 to 12, a clear indicator of its striving influence. As a result, the advertising rates for prime-time spots have surged from $2.50 to an impressive $15.00, reflecting the value Authentic Holdings is creating.
Independent Valuation and Pricing Strategy
Before finalizing the purchase, Authentic Holdings conducted a thorough independent valuation analysis. This extensive evaluation confirmed the library's worth at $14.8 million, allowing for a well-informed negotiation. Ultimately, both parties settled on a purchase price of $11 million, utilizing a Convertible Preferred Stock structure that will protect shareholder equity in the short term.
Future Growth and Development
The terms of this purchase are particularly noteworthy. The Convertible Preferred Stock cannot be converted to common shares for three years, thus avoiding immediate dilution. This strategic move allows Authentic Holdings to focus on growth while enhancing liquidity in common equity. The team believes this acquisition aligns perfectly with their strategy to bolster shareholder value.
Leadership and Commitment
Leading the content acquisition efforts is Maureen Cooper, founder of Goliath Motion Pictures Entertainment, who has built this remarkable library over her 15-year career in the industry. Her expertise has contributed significantly to the expansion of TV affiliates from 26 to 61 designated market areas (DMAs). The integration of her experience further strengthens the Maybacks team, paving the way for recognition in the Connected TV arena.
Positioning as an Independent Network
This acquisition uniquely positions Authentic Holdings as an independent network capable of providing invaluable content to independent station owners. This approach is expected to enhance revenue sharing programs, offering mutual benefits that respond to a growing demand for quality programming.
Anticipating Major Market Coverage
Plans for growth include broadcasting into major market areas, with a focus on achieving full coverage within 12 to 24 months. Capturing these markets could elevate advertising rates significantly, potentially reaching $50-$100 for a 30-second spot. With this acquisition, Authentic Holdings has the tools to ensure long-term growth trajectories compared to its previous performance.
Conclusion: A New Era for Authentic Holdings
The anticipation surrounding this acquisition is palpable. Authentic Holdings is poised to embrace a transformative era, believing firmly that possessing quality content is essential for success. As the company moves forward, it pledges to keep its shareholders informed about progress and future communications.
About Authentic Holdings
Authentic Holdings is a multifaceted entity blending entertainment, technology, and textiles to craft a diverse portfolio. Their partnership with WiseDV highlights their dedication to innovation in the streaming landscape.
Frequently Asked Questions
What is the primary purpose of Authentic Holdings acquiring Goliath?
The acquisition aims to enhance Authentic Holdings' content library, providing strategic growth opportunities and boosting market presence.
How much did Authentic Holdings pay for Goliath?
Authentic Holdings acquired Goliath Motion Pictures for $11 million through an equity-based transaction.
What type of stock is used for the acquisition?
The deal will utilize Convertible Preferred Stock, which cannot be converted to common shares for three years after issuance.
Who is leading the acquisition from Goliath's side?
Maureen Cooper, founder of Goliath, leads the acquisition efforts, bringing over 15 years of industry experience.
How will this acquisition affect Authentic Holdings’ revenue?
By acquiring Goliath, Authentic Holdings anticipates significant growth in advertising revenues and an expanded market footprint.
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