Wizzard Media, a Pittsburgh based company that provides podcast publishers with distribution and monetization services, announced they are nearing completion of the acquisition of China’s leading digital entertainment products provider, FAB. The companies are working through the last due diligence issues and creating the final closing agreements. Once the deal is deemed to meet all regulatory requirements and approved by each company’s shareholders, the plan is for the U.S. management team of Wizzard Media, including the CEO and CFO, to remain with the addition of the CEO of FAB, Hongchung Zhang, as Chairman of the Board.
John Busshaus, CFO Wizzard Media, and I just returned from Beijing last week where we met with FAB management as well as their attorneys and auditors,” said Chris Spencer, Wizzard Media CEO in a press release. “We were very happy with the progress of the FAB team as they work hard to prepare to be a publicly listed company. Additionally, we toured FAB retail stores, franchise stores and saw several new kiosk models. FAB is growing rapidly and is a leader in the distribution of copyright protected media in China. Their fiscal 2011 results have been outstanding and we look forward to finalizing our business relationship very soon.”
FAB is the fastest growing outlet for the comprehensive distribution of media in China in terms of sales revenue and operational scope. Revenue in 2009 was $39 million and in 2010 it was $55.5 million. FAB distributes products and services by three channels including traditional retail and wholesale, a network of over 4,000 Kiosks across China and online sales of the latest in music and films. At FAB retail outlets, Chinese consumers purchase CDs, DVDs, blue-ray disks, games, magazines and books. Massive crowds appear for weekly Chinese celebrity signings and promo events.
“The best way to describe FAB is – Best Buy meets iTunes meets Redbox. We believe FAB has the opportunity to dominate mobile digital media distribution throughout China,” said Chris Spencer.
For more information about Wizzard Media, please visit www.wizzardsoftware.com
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