SURFSTITCH BOOSTS DIGITAL EXPOSURE

SURFSTITCH BOOSTS DIGITAL EXPOSURE

JUST two days after its first AGM, Burleigh-based SurfStitch (ASX:SRF) has made good on its aggressive acquisition strategy, saying it is set to pay $15 million for Garage Entertainment and its associated company TMG.

The online retailer announced it will pay cash and shares to buy the extreme sport video producer, which has a library of more than 3000 titles which it distributes through its own video-on-demand platform and dedicated TV channels.

Garage Entertainment, founded by Nick Cook and Mick Lawrence in 2009, is behind a number of notable titles including the controversial Bra Boys documentary - a segment about Maroubra's notorious surf gang.

The acquisition adds to SurfStitch's growing network which includes surf content network Magicseaweed and online publisher Stab magazine, which it purchased for close to $14 million and 4.8 million shares.

SurfStitch says the acquisitions will help to create a full media and content spectrum to support the company's strategy of becoming a destination site for customers to connect with everything related to action sports.

It says Garage Entertainment will accelerate and increase the group's exposure in the content product and digital video-on-demand world.

"Our demographic spends 1.2 hours daily on online TV, second only to social networking," says SurfStitch CEO Justin Cameron.

"Statistics show that the mass market engages through TV, digital subscription and apps.  And we are not alone in recognising this trend. 

"Netflix is a significant contributor to network audience projection decline.  Amazon Prime has made significant investment in original content to bolster the popularity of Amazon Prime membership. 

"We have a head start in the arena today we have significant short-form content capabilities, a community of engaged users and marry commerce alongside it.  Garage Production and Entertainment allows us to fulfil the mass appeal of subscription video-on-demand."

SurfStitch reaffirmed its FY16 guidance of $15-18 million in EBITDA - double last financial year's result.

The company's shares are sitting around $1.99, above the December 2014 listing price of $1.

Get our daily business news

Sign up to our free email news updates.

 
Whitefox Recruitment founder Luke Hemmings making strides as a careers leader
Partner Content
After relocating his Canberra-founded company Whitefox Recruitment to the Gold Coast la...
Whitefox Recruitment
Advertisement

Related Stories

ASIC secures its first court win for greenwashing against US giant Vanguard

ASIC secures its first court win for greenwashing against US giant Vanguard

The Australian corporate watchdog has caught out one of the world&r...

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Medicinal cannabis group Althea shaves $1.5m from its cost base through staff cutbacks

Australian-founded medicinal cannabis company Althea Group (ASX: AG...

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Charter Hall snares 15pc stake in Hotel Property Investments for $97m from 360 Capital

Listed funds manager 360 Capital Group (ASX: TGP) has offloaded its...

The party’s over: Splendour in the Grass festival cancelled for 2024

The party’s over: Splendour in the Grass festival cancelled for 2024

Splendour in the Grass, Australia’s largest winter music fest...