Gaiam to Have GoodTimesCataloger and media company Gaiam Inc. signed a definitive agreement to acquire substantially all of the assets of GoodTimes Entertainment for $40 million in cash and the assumption of certain liabilities, Gaiam said yesterday.
Gaiam, Broomfield, CO, publishes catalogs such as Harmony, Living Arts and Real Goods that cater to people who value personal development, natural health and inspirational entertainment.
GoodTimes Entertainment creates and distributes entertainment and wellness programming. Its library contains about 2,000 titles, including fitness franchises such as The Firm, children's classics such as "Benji" and numerous theatrical releases.
Gaiam is "uniquely positioned to leverage our existing direct and retailer infrastructure, as well as capitalize on [GoodTimes'] expertise in direct response TV and subscription clubs to double the revenue in our direct business," Gaiam president Lynn Powers said about the acquisition in a statement.
As a result of the deal, Gaiam expects to generate more than $200 million in annual revenue, distribute 20 million catalogs yearly and have about 7 million direct customers.
The deal will leverage Gaiam's store-within-store relationships with 4,300 specialty retailers and GoodTimes' mass market relationships.
Gaiam becomes one of the top 10 studios based on overall DVD market share and will have the sixth-largest market share for all non-theatrical DVDs, according to data from Nielsen Videoscan. In the company's core wellness/fitness category, Gaiam will extend its market share to about 37 percent.
Chantal Todé covers catalog and retail news and BTB marketing for DM News and DM News.com. To keep up with the latest developments in these areas, subscribe to our daily and weekly e-mail newsletters by visiting www.dmnews.com/newsletters