Shares of entertainment company Big Entertainment (Nasdaq; BIGE) climbed 3/4 — or 4.3 percent – to 18-1/8 on Wednesday after CBS closed a deal to acquire approximately a 30 percent equity stake in the company. Big Entertainment owns movie-related site Hollywood.com.
Big Entertainment will receive approximately $105 million in advertising, promotion, content and other consideration over seven years. Big Entertainment will be promoted across the full range of CBS properties, including television and radio. Branding is one of the biggest battles for online businesses, and this deal should obviously raise the profile of Hollywood.com.
For Big Entertainment, this looks like a big deal, indeed.