Quickflix has entered into a non-binding MOU with a Shanghai-based film and television company to combine their businesses and form a global streaming platform for distribution of Chinese film and TV content into China and international markets.
Subject to satisfactory completion of further due diligence and all necessary shareholder and regulatory approvals, the parties intend to proceed with a transaction in which Quickflix will acquire the Shanghai-based company for a consideration still to be negotiated.
The Shanghai-based company produces original Chinese language film and TV, participates in co-productions in China and international markets and has a slate of future production including a co-production with a US studio.
The company is said to be profitable and consolidation with Quickflix would result in the combined entity having a significantly improved financial outlook and ability to access further capital for growth.
Quickflix has made a considerable investment over a number of years to create a scalable streaming platform supporting a wide range of major consumer devices.
Combining the Quickflix platform with original content and accessing large global audiences represents a significant opportunity to unlock the value of Quickflix.
Quickflix said it will provide a further update on this undertaking on or before August 20.