Knightscove scoops up Studio 4
EmptyTORONTO -- Canadian producer Knightscove Media said Friday that it has signed a letter of intent to acquire Los Angeles-based online and video-on-demand broadcaster Studio 4 Networks for $7 million in cash and stock.
Toronto-based Knightscove, which recently acquired home entertainment distributor Morningstar Entertainment and its library of 1,400 DVD titles, said it intends to feed its family themed product through Studio 4's three cable VOD channels and two Internet video sites.
As part of their agreement, Knightscove will acquire outstanding shares in Studio 4 for $3.5 million and issue 5.5 million shares in the Canadian company at 64 cents each.
Ed Stansfield, and former Disney executive and Studio 4 president, will become executive vp in charge of broadcasting for Knightscove, while Studio 4 COO Colin Phillips will remain with the U.S.-based broadcaster. Studio 4's family-themed VOD channels -- Studio4 Learning, Fitness and Kids -- currently reach about 8 million households in the U.S. and Canada via cable.
Studio 4 also owns and operates www.studio4kids.tv and www.studio4fitness.tv.