C-Media now also holds three of YOU's seven board seats. Two board members, Michael Jackson, the former chairman of Universal Television, USA Entertainment, and CEO of UK's Channel Four, and Michael Birkin, the former CEO of Omnicom Asia, resigned to allow the representatives from the Beijing-based company to join YOU's board.
Xuesong Song is the co-founder, chairman, CEO and the largest shareholder in C-Media.
"We are excited that C-Media has elected to significantly expand their strategic investment in YOU On Demand and fully fund the company for the foreseeable future," said YOU on Demand Chairman Shane McMahon in a statement. "In addition to providing us with funding to assist our company at this important inflection point in our corporate evolution, we also look forward to continuing to benefit from Mr. Song's tremendous experience and success doing business in China, as well as C Media's mobile industry expertise. With C Media's ongoing support, we will continue YOU On Demand's mission to provide consumers with the best and highest quality entertainment experiences across a wide array of user-friendly platforms."
YOU on Demand's stock rose 1.05% to $2.74 on Tuesday morning.
TheStreet Ratings team rates YOU ON DEMAND HOLDINGS INC as a "sell" with a ratings score of D-. TheStreet Ratings Team has this to say about their recommendation:
"We rate YOU ON DEMAND HOLDINGS INC (YOD) a SELL. This is driven by some concerns, which we believe should have a greater impact than any strengths, and could make it more difficult for investors to achieve positive results compared to most of the stocks we cover. Among the areas we feel are negative, one of the most important has been weak operating cash flow."