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Press Release

YOU On Demand and Bruno Wu's Sun Seven Stars Complete $10 Million Strategic Investment
 
   

NEW YORK, Dec. 23,    2015 /PRNewswire/ -- YOU On Demand Holdings, Inc. (NASDAQ: YOD) ("YOU On    Demand" or "YOD" or the "Company"), a leading Video On Demand ("VOD") service    provider in China, delivering Hollywood movies & premium content to TV    and mobile screens, and Bruno Wu's Sun Seven Stars Media Group Limited    (SSS), one of the largest private media and investment conglomerates in China,    have restructured the previously announced strategic investment, and closed the    transaction, with SSS making a $10 million USD    investment in YOD at $2.20 per share of common stock,    an approximate 10% premium over the volume-weighted average closing price of the    common stock as quoted by NASDAQ during the last 60 trading days, and receiving    2-year warrants to purchase an additional 1,818,182 shares of YOD at $2.75 per share, and a 6-month promissory note, which    is automatically converted upon shareholder approval, into an additional    9,208,860 shares of YOD in exchange for license rights to content controlled by    SSS.  Exercise of the warrant and conversion of the note, along with payment of    up to 15 million of earn-out shares issuable to SSS' affiliate, Tianjin Enternet    Network Technology Limited, are all subject to receipt of YOD shareholder    approval.

   

Commenting on the transaction, Mr. Wu stated, "As the SSS team continued to    examine and comprehend the foundation, platform and service that YOU On Demand has    been building over the last several years, we became more convinced to commit to the    evolution of the YOD brand. The quick completion of this strategic investment is a    testament to both the hard work by all involved, and more importantly, our excitement    to begin working with YOU On Demand.  By leveraging SSS' strong leadership    position in content ownership, we have already begun the process of developing YOU On    Demand into a leading next generation service offering in China's high growth paid content space."

   

Chairman of YOU on Demand Shane McMahon stated,  "Mr. Wu's and Sun Seven    Star's industry know-how and excellent reputation create the perfect partner to    really catapult the YOD service and brand much further in the Chinese consumer    market.  We look forward to laying out in more detail YOD's mutually beneficial    strategic plans, at the close of the full transaction."

   

Approval of the issuance of the remaining shares of YOD, which issuances were    approved by both companies' Boards of Directors, is subject to approval by holders of    a majority of the outstanding shares of YOD common stock.  YOD will seek to    obtain the necessary shareholder approvals in Q1 2016.

   

In light of the restructuring of the investment terms, the Board of Directors has    decided to no longer seek shareholder approval of the SSS strategic investment at its    Annual Meeting to be held on December 29, 2015, and    accordingly, is withdrawing consideration of Proposal No. 2 from the agenda for its    Annual Meeting.

   

YOD had originally proposed that shareholders approve the share issuances to SSS    and its affiliates as part of the strategic investment by SSS in YOD.  This    proposal was included as Proposal No.2 in YOD's definitive proxy statement on    Schedule 14A as filed with the U.S. Securities and Exchange Commission on    December 9, 2015.

   

For a more detailed summary of the material provisions of the revised terms of the    SSS strategic investment, see YOU On Demand's current report on Form 8-K to be filed    with the U.S. Securities and Exchange Commission ("SEC") at www.sec.gov.  As a    reminder, YOU On Demand's Annual Shareholder Meeting will take place on    December 29, 2015, at 10:00 AM, local time (PRC    Time), at Office Park, Tower A, Suite 2603, 10 Jintong West Road, Chaoyang District,    Beijing 100020, China.

   

The Notice of Meeting, Proxy Statement, Proxy Card and Annual Report are available    on the internet at: materials.proxyvote.com/98741R.

   

YOU ON Demand's Board recommends that the Company's stockholders vote FOR the    election of the nominees listed in Proposal 1(a) and Proposal 1(b) and FOR Proposal     3.

   

About YOU On Demand Holdings, Inc. (http://corporate.yod.com)
YOU On    Demand (NASDAQ: YOD), is a leading multi-platform entertainment service company    delivering premium content, including leading Hollywood movie titles, to customers across China via Subscription Video On Demand and Transactional Video    On Demand. The Company has secured alliances with leading global media operators and    content developers. YOU On Demand has content distribution agreements in place    with many of Hollywood's top studios including Disney Media Distribution,    Paramount Pictures, NBC Universal, Twentieth Century Fox Television Distribution,    Miramax, as well as a broad selection of the best content from Chinese filmmakers.    The Company has a comprehensive end-to-end secure delivery system, governmental    partnerships and approvals and offers additional value-added services. YOU On Demand    has strategic partnerships with the largest media entities in China, a highly experienced management team with international    background and expertise in Cable, Television, Film, Digital Media, Internet and    Telecom. YOU On Demand is headquartered in both New York,    NY and Beijing, China.

   

About Bruno Wu and Sun Seven Stars
    Bruno Wu is now the Founder, Co-Chairman and CEO of    Sun Seven Stars Media Group Limited, one of the biggest private media and investment    conglomerates in China. Its predecessor is Sun Media    Group Holdings Limited, which was established by Bruno    Wu and Yang Lan in 1999 and became one of the    leading entertainment, media and investment companies in Asia after 10 years of growth. Sun Seven Stars Media Group    Limited now has 7 business units including Sun Media Group, Sun eSports Group, Sun    Seven Stars Culture Group, Enternet Group, Sun TV+ Network Group, Sun Music Group and    Sun Art Capital Group. It has a presence in over ten major cities in the world    including: Beijing, Shanghai, Tianjin, Hong Kong, New York, LA,    Paris, London,    Toronto, Seoul and    Scandinavia countries. 

   

Safe Harbor Statement
This press release contains certain statements    that may include "forward looking statements." All statements other than statements    of historical fact included herein are "forward-looking statements." These forward    looking statements are often identified by the use of forward-looking terminology    such as "believes," "expects" or similar expressions, involve known and unknown risks    and uncertainties. Particular forward-looking statements in this release include    statements regarding the effects of the business partnership with SSS. Although the    Company believes that the expectations reflected in such forward-looking statements    are reasonable, they do involve assumptions, risks and uncertainties, and these    expectations may prove to be incorrect. You should not place undue reliance on these    forward-looking statements, which speak only as of the date of this press release.    The Company's actual results could differ materially from those anticipated in these    forward-looking statements as a result of a variety of factors, including those    discussed in the Company's periodic reports that are filed with the Securities and    Exchange Commission and available on its website (http://www.sec.gov). All forward-looking statements attributable to    the Company or persons acting on its behalf are expressly qualified in their entirety    by these factors. Other than as required under the securities laws, the Company does    not assume a duty to update these forward-looking statements.

   

CONTACT:
Jason Finkelstein
    YOU On Demand 
    212-206-1216
    jason.finkelstein@yod.com 
    @youondemand 
    corporate.yod.com

   

To view the original version on PR Newswire, visit:http://www.prnewswire.com/news-releases/you-on-demand-and-bruno-wus-sun-seven-stars-complete-10-million-strategic-investment-300196739.html

   

SOURCE YOU On Demand Holdings, Inc.

 

 
    Source: PR Newswire (December 23, 2015 - 10:07 AM EST)
   
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