Wizzard Software Corporation (NYSE Amex: WZE), the world’s leading podcast network, today announced that it has signed a definitive share exchange agreement to acquire 100% of the outstanding shares of Digital Entertainment International Ltd., herein referred to as FAB, a leading licensor and distributor of copyright-protected digital media content in China.
FAB generated audited revenues of $39.1 million in 2009, $55.5 million in 2010 and $70.9 million in 2011. Net income generated by FAB was $4.6 million in 2009, $11.5 million in 2010 and $15.3 million in 2011.
Founded in 2003, FAB is headquartered in Beijing and offers the largest selection in mainland China of copyrighted DVD’s, Blu-ray Discs, music CD’s, video games and downloadable digital content through three distribution channels – wholesale and retail, vending kiosks, and internet stores.
“We have been looking for the right international partner to help grow and monetize our digital media distribution business and with FAB we have found a high-growth company with outstanding leadership and innovative technology products uniquely positioned in the world’s largest consumer market,” said Chris Spencer, CEO of Wizzard Media. “FAB is in the process of leveraging its well-known and reputable retail media brand into a growing online and kiosk-based media distribution network. The best way to describe FAB is - Best Buy meets iTunes meets Redbox. We believe FAB has the opportunity to dominate mobile digital entertainment delivery throughout China as it currently does through its traditional wholesale and retail media distribution business.” For more information on FAB, please click here.The FAB Media Kiosks have served to greatly enhance consumer ease-of-purchase while reducing the appeal of pirated content, positively transforming market dynamics in China for legitimate content and facilitating licensing opportunities with traditional media publishers who desire safe access to the world’s largest, fastest-growing consumer market. The combined company plans to aggressively expand through internal growth and domestic and international acquisitions over the next two years to build a global distribution powerhouse for mobile digital entertainment.