By Sam Boughedda

Investir.com — Chicken soup for Soul Entertainment (NASDAQ:) is buying the assets of 1091 Media, including its distribution business known as “1091 Pictures”, the company announced Wednesday.

CSSE rose more than 9% following the announcement.

CSSE will pay approximately $15.6 million in cash, Series A perpetual preferred stock and Class A common stock for 1091 Pictures.

CSSE said the deal accelerates its strategy to create the first independent ad-based video-on-demand streaming service by approximately doubling the size of its content catalog. The 1091 Pictures library includes approximately 4,000 movies and TV series. It also has a pipeline of over 350 titles per year.

“This is the next evolution of our content library strategy,” said Elana Sofko, Chief Strategy Officer of Chicken Soup for the Soul Entertainment. “Genre content with loyal 1091 Pictures fanbases includes music, more than a dozen different sports, paranormal, and more, allowing us to continue to grow both our streaming services and our FAST chains.

CSSE said it expects to recognize more than $10 million in revenue with approximately $3 million in additional EBITDA over the next 12 months as a result of the transaction.

The transaction is expected to close in early to mid-March 2022.