Los Angeles content distributor Cinedigm Corp. is selling back its Hollywood Software unit to an investor group led by David Gajda, one of the software company’s founders. Financial terms of the all-cash deal were not disclosed.
When it bought Hollywood from Gajda in 2003, Cinedigm was in the business of converting movie theaters from analog projection to digital. Back then, it was interested in Hollywood’s systems for tracking film sales.
But since then, Cinedigm has reimagined itself as a company that aggregates, creates and distributes content to theatres, digital platforms and physical retailers. It now has library of over 52,000 movies and TV episodes drawn from suppliers that include the NFL, National Geographic and Jim Henson.
Hollywood’s tracking software wasn’t a good fit with Cinedigm’s new business model, Cinedeigm Chief Executive Chris McGurk said in a statement Wednesday.
“Given Cinedigm’s shift in focus to entertainment distribution and particularly the digital (streaming) network business, continuing in the software business, where we are selling to many of our competitors, no longer made strategic sense,” he said.
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