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Why Cinedigm Stock Jumped Thursday

By Daniel Sparks – Jul 2, 2020 at 5:05PM

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Investors seemed impressed with the media company's recent deals.

What happened

Shares of Cinedigm (CIDM 0.88%), a provider of premium streaming content, jumped 16% on Thursday. The stock's gain followed two important deals for the company over the last few days, including a partnership to launch a new over-the-top (OTT) TV service with LiveXLive (NASDAQ: LIVX) and the debut of one of Cinedigm's TV series on Fox's (FOX -1.14%) (FOXA -0.93%) ad-supported service Tubi. 

A chart showing a stock price rising.

Image source: Getty Images.

So what

On Tuesday, Cinedigm announced a partnership with LiveXLive to launch a new LiveXLive-branded streaming OTT channel for U.S. and international markets. "Cinedigm will secure international licensing and distribution of the channel on LiveXLive's behalf," the company said in a press release.

Then on Wednesday Fox's Tubi said it is bringing Cinedigm's 30 seasons of "The Joy of Painting" -- the famed Bob Ross series in which he taught viewers to paint through almost 400 episodes -- to its platform.

Now what

Cinedigm has had an impressive run in 2020, with shares up nearly 200% year to date. That said, the stock is down sharply from the levels above $3 per share it touched in early June. With so much movement in the stock recently, and given the company's small market capitalization of $215 million, further significant volatility in the coming weeks is likely.

Daniel Sparks has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

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