Gaiam to enter big leagues with purchase of GoodTimes' 2,000-title catalog

Taking a step into the big leagues, wellness, mind-body and fitness entertainment company Gaiam (Nasdaq: GAIA) has said it intends to pay $40 million to buy the assets of GoodTimes Entertainment, which has a video library containing more than 2,000 titles.

Taking a step into the big leagues, wellness, mind-body and fitness entertainment company Gaiam (Nasdaq: GAIA) has said it intends to pay $40 million to buy the assets of GoodTimes Entertainment, which has a video library containing more than 2,000 titles.

The deal, announced July 12, is pending federal bankruptcy court approval. GoodTimes Entertainment filed for bankruptcy protection on July 11.

Once the acquisition is approved by the bankruptcy court, Gaiam will be one of the top 10 studios based on overall DVD market share and the sixth-largest market share in non-theatrical DVDs -- surpassing the likes of Twentieth Century Fox, Universal, Columbia Tristar and MGM.

GoodTimes Entertainment is a media company that creates and distributes entertainment programming and home video products through various channels, including television, theaters, retailers and the Internet. Among its 2,000 titles are wellness franchises such as "The Firm" and "Tae Bo," children classics such as "Benji" and "The Jungle Book," and numerous theatrical releases.

With the acquisition, Gaiam said it expects to generate more than $200 million in annual revenue. Gaiam's home media will be carried by more than 40,000 retail stores in United States, in addition to its television and theatrical distribution. Gaiam also expects to distribute 20 million catalogs per year and have about 7 million direct customers.

In the company's core wellness/fitness category, Gaiam said it will expand its leading market share to approximately 37 percent.

"Our successful penetration of specialty retailers, combined with GoodTimes Entertainment's strength in mass market, will create an ideal distribution platform for independent films and other home video titles," Jirka Rysavy, Gaiam chairman and CEO, said in a statement.

Gaiam expects to close the deal by the end of the third quarter. Gaiam said it will finance the purchase with existing cash or borrow under its credit facility. Gaiam recently increased its cash position with the sale of Class A unregistered common stock to funds advised by Prentice Capital Management.

According to a filing with the U.S. Bankruptcy Court for the Southern District of New York, GoodTimes Entertainment owes more than $100 million to hundreds of creditors. Quadrangle Capital Partners bought the company in 2003 for an estimated $90 million plus around $160 million of debt in a deal seen as a way for the private equity firm to invest in the growing direct-response marketing industry. Quadrangle Capital was banking on sales of both VHS and DVD formats to make its investment work in the company.

But, as more people switched to DVD players, sales of the VHS format did not maintain the kind of momentum investors thought it would -- putting the company heavily in debt. Gaiam and Quadrangle began to negotiate the acquisition a month ago, before GoodTimes Entertainment filed its bankruptcy plan in New York.

Shares of Gaiam spiked $1.28, or 18 percent, to close at $8.40 on the Nasdaq. The stock is now trading at a 52-week high.


Mind-body specialist Gaiam enters aerobic market

Gaiam, a company known mostly for its yoga and Pilates products, is stepping in a new direction – literally -- with a series of walking DVDs and products. The most recent release is “Get Moving! Walking for Weight Loss” a DVD created with fitness instructor Madeleine Lewis. more

Fitness financials: Bally's Q3 loss widens, plus Cybex, Brunswick, Gaiam, Health Fitness, Big 5, Sport Chalet, adidas

Bally's Q3 loss widensBally Total Fitness (NYSE: BFT) said its third-quarter loss widened due to an asset impairment charge and other expenses. The company reported a loss of $5.7 million, or $0.14 per share, compared with a loss of $214,000, or a penny per share, a year ago. It more

Gaiam acquires Spri Products

Gaiam Inc., a company that specializes in lifestyle, wellness and education, announced March 10 in a quarterly earnings call with investors that it had just completed an acquisition of Spri Products. Calls to Spri were not returned and Gaiam's President Lynn Powers was more


Fitness financials: Nautilus narrows 3Q loss on slightly lower revenue; plus Gaiam and Big 5

Nautilus Inc. (NYSE:NLS) reported slightly lower revenue for the third quarter 2011, but significantly narrowed its loss on better earnings from its continuing operations, despite weaker retail sales. The Vancouver-based home fitness equipment company reported third-quarter more


One year later: Spri under Gaiam ownership completing integration, looking forward

A year after news about Spri Products' acquisition by Gaiam (Nasdaq: GAIA) quietly began seeping out without adieu, the company says it has nearly completed a long integration and has just started to look farther down the road. Still, the brands' identities remain separate, more

Fitness financials: Stockholder files lawsuit for right to see Bally's private records, plus Gaiam, Town Sports, Big 5, Sport Chalet, GSI, Wal-Mart

Stockholder suing Bally for right to see private recordsLiberation Investments LP filed a lawsuit against Bally Total Fitness (NYSE: BFT) on Nov. 10 in Delaware's Chancery Court in New Castle County in an attempt to force it to release private company records. Liberation more

Outlast purchases Frisby assets in bankruptcy auction

Outlast Technologies, Inc. acquired most of the remaining assets of Frisby Technologies for $455,000 in a bankruptcy court auction that closed May 18. The assets include various technology licenses, Frisby's Thermasorb trademarks, logos and associated website, Frisby's company more


Fitness financials: Gaiam 4Q 2010 revenue down, but profit up on cost cutting

Gaiam Inc. (Nasdaq: GAIA) reported lower revenue but higher profit on cost cutting for the fourth quarter 2010. The Boulder, Colo.-based lifestyle and fitness media company said on March 9 its latest quarterly revenue fell 4.9 percent from a year ago to $83.3 million for the more


Gaiam 1Q revenue down, loss widens

Gaiam Inc. (Nasdaq:GAIA) reported lower revenue and a loss for the first quarter 2011, as its sales declined on reduced advertising and retailer Borders’ bankruptcy reorganization. The Boulder Colo.-based healthy lifestyle media company and owner of Spri fitness products more