Genius Brands International, Inc. "Genius Brands" (NASDAQ: GNUS),
the global brand management company that creates and licenses
multimedia entertainment content for children, released a letter to
shareholders from Chairman & CEO Andy Heyward. The complete
letter follows:
Dear Friends and Shareholders: This morning we announced a
groundbreaking joint venture between Genius Brands International
(NASDAQ:GNUS) and Stan Lee’s POW! Entertainment to create
STAN LEE UNIVERSE. STAN LEE
UNIVERSE, will assume worldwide rights, in perpetuity, to
the name, physical likeness, physical signature, live and animated
motion picture, television, online, digital, publishing, theme
park, comic book, merchandising and licensing rights to Stan Lee
and his IP creations past*, present, and going forward.
In all of Hollywood, there is no greater prize. This is the
Holy Grail. STAN LEE UNIVERSE is a once in a
lifetime asset, drawn from over 100 original, heretofore
unexploited properties, created by the most successful creator of
intellectual property of our time. In my view, the potential value
in this single asset, is greater than any IP anywhere in Hollywood.
Jointly owned by Genius and POW, and subject to due
diligence and documentation, this deal will vest Genius Brands as
the managing and controlling partner of the STAN LEE
UNIVERSE joint venture.
Let me provide some context: Stan Lee, was the creator of the
most successful characters ever made, including
Spider-Man, Iron Man,
Black Panther, The Incredible Hulk, X-Men,
Thor, Captain America, Ms. Marvel,
Silver Surfer, Antman,
Nick Fury, Guardians of the
Galaxy, and of course the #1 movie box-office franchise of
all time, The Avengers. For decades, Stan
was the editor and creative force behind Marvel Comics, which was
sold to the Walt Disney Company for $4.4 billion, and has since
proved to be worth many multiples of that amount. In
addition to the #1 movie box office hit of all time,
Avengers Endgame, Stan Lee created 2 of
the Walt Disney Company’s 3 biggest blockbusters, and
5 of the top 12 grossing movies of all
time. It is almost
impossible to conceive that one mind created all this wealth.
The spinoffs alone defy the imagination. From humble
beginnings in comic books, to motion pictures, to animated
television, to toys, apparel, video games, and every conceivable
licensed product imaginable, Stan Lee characters populate the
screens and retail shelves worldwide. There is no creator who has
influenced pop culture, and created more successful and more
valuable entertainment, than Stan Lee. Not even Walt Disney. Over
and over, again and again, Stan created characters and stories that
resonated in the hearts and minds of all peoples of all ages around
the world, with Billions and Billions and Billions of dollars of
motion picture box-office, television, video games, and consumer
product licensing.
STAN LEE UNIVERSE will draw from the repository
of all of the characters and IP created by Stan Lee, post-Marvel
Entertainment*, not otherwise elsewhere. From over 100
original Stan Lee creations, we will develop and license
approximately seven of these properties per year.
Having worked with Stan and been a close friend for almost 30
years, this culminates a personal dream for Genius Brands to now
become the guardian of both his brand and body of work. I have no
doubt that the greatest characters, the greatest stories, and the
greatest hits from the mind of Stan Lee, have yet to be told.
And as big as Spider-Man, Black Panther, X-Men, and the
Avengers are today, tomorrow it will be Stan Lee’s TOMORROW
MEN, his STRINGBEAN, his BLACK
FURY, and VIRUS.
Former President of Marvel Productions, Margaret Loesch who worked
intimately with Stan for years, said, “Stan Lee was one of a kind.
Stan Lee Universe is going to be an unimaginable source of
blockbuster entertainment for many years to come.” Former President
of Walt Disney Television and Chief Content Officer of Genius
Brands’ Kartoon Channel!, David Neuman said, “The spinoff
opportunities for Kartoon Channel! alone are
mind-boggling including a dedicated Stan Lee Universe program
block….like ‘Stan Lee Saturday’.”
When we looked at the depth of these creations that sit in
this library, the magnitude and value of this asset slowly began to
sink in. There simply is no greater treasure chest of Intellectual
Property anywhere. I feel like we went down to the basement of John
Lennon and Paul McCartney’s recording studio and found 200 songs
that had never been released. One was called Yesterday,
another was called Hey Jude, and another called Sergeant Pepper.
They were just waiting for us to bring them forth to the market,
along with their names and likenesses, signatures, and the right to
merchandise the Beatles. It feels that big to us! The
financial impact of an asset like STAN LEE
UNIVERSE cannot be overstated. We have seen what
properties created by Stan Lee, did for the Walt Disney Company in
revenues and earnings. Not just in the Billions of dollars of
movie box office, but in the even greater, downstream revenue
across the entire business, be it television, digital, consumer
products, games, or theme parks. We have studied the
Disney playbook and the brilliant job they did at bringing Stan’s
creativity through the food chain. Having observed and
learned, we believe that we can take the next surge of “Stan Lee
properties 2.0”, to the market in no less a way, and create massive
value for our shareholders. Just like LeBron James, brought
his talents to Miami, and then to Cleveland where he also won an
NBA championship (and now to Los Angeles!), we are confident that
STAN LEE UNIVERSE, will once again demonstrate the
unusual creative gift of this man and the power of the brand.
Spider-Man was created in 1962, The Avengers in 1963.
They live stronger than ever today. I have every belief that
the properties introduced from STAN LEE UNIVERSE,
can do the same. They are just as good and will have the same
attention. They are standing on the shoulders of the man who had
already perfected his craft, and yet never stopped growing and
evolving. I have no doubt that the signature of Stan Lee has
no less potential to excite the imagination, than the signature of
Walt Disney, we all know and love. Why? Because, like that of
Walt Disney, it stands for something.
On a personal note, I often went with Stan to Comic-Con.
For those of you unaware of what Comic-Con is, it is a convention
of pop culture, which has become the annual “MUST GO TO” pilgrimage
from comic books to movies, to TV shows, toys, games,
entertainment, etc. It is a mecca of CosPlay. It began in San
Diego, and subsequently spread to Comic Cons in New York and around
the world, where an appearance by Stan Lee, was the ultimate
validation of the event. It is hard to describe what occurred
when Stan Lee arrived in the building, and if I hadn’t been there
with him myself, I would not have believed it. It was like
traveling with Elvis, but even more so, if that could even be
imagined. As humble and unassuming as he was, Stan was a star
of indescribable proportions. Despite all of the celebrities that
would show up and do panels, to promote their movies or brands,
Stan sat at the top like Zeus on Mt. Olympus. Endless throngs
of people would line up for a picture with him or an
autograph. And no matter what was going on, he was always
humble and gracious. He was interested to know about and talk
to every person. He asked questions, because he truly cared,
and that is from where the magic of his characters came…He listened
and he cared about people. It didn’t matter if you
were the biggest star in the world, or a Fortune 500 CEO, or the
President of the United States, or the guy who parked cars, Stan
Lee, was as interested in you as you were in him.
It didn’t matter, how big the movie star was, they were all in
awe of Stan, and when he came in the room, all of the oxygen
left. There was only one star people wanted to see.Stan’s
cameos in each Marvel movie were legendary. His surprise
appearances in each film, were anticipated as much as the movie
itself!
It was no different for television. Whether he appeared as
a guest star on the Simpsons, or on Big Bang Theory, it was a
ratings smash, and the event of the season.
One of the things I am most excited about STAN LEE
UNIVERSE is particularly poignant in these times today,
when we are examining and seeking to move our society forward in a
just and positive way for all. Stan was an outspoken advocate
of civil rights, long before it became fashionable. He spoke
out against bigotry always. His heroes were champions of
goodness and stood up for the those who often could not stand up
for themselves. His anthem of Spider-Man calls out today more than
ever. ‘With Great Power comes Great
Responsibility.” Inside, Genius
Brands, we feel great responsibility to steward this brand.
We will be creating a dedicated business and creative unit
specific to Stan Lee Universe. For the
millions of Stan Lee fans, we look forward with the greatest of
sensitivity, protecting its integrity and faithfully bringing the
characters to the movie screens, comic books, TV, game platforms,
mobile devices, toys and licensed products worldwide.
For the Genius Brands shareholders, we look forward to
smartly and efficiently monetizing STAN LEE
UNIVERSE across all platforms. I have no doubt that we
will attract the most talented producers, directors, and marketers,
in the world as we unlock this one of a kind treasury and bring
forth the next wave of Stan Lee creations for the world to
experience and enjoy. We are proceeding immediately with our due
diligence and expect final documentation to follow promptly
thereafter.
Sincerely,Andy Heyward Chairman & CEO Genius Brands
International, Inc.
Forward Looking Statements: Certain statements
in this press release constitute "forward-looking statements"
within the meaning of the federal securities laws. Words such as
"may," "might," "will," "should," "believe," "expect,"
"anticipate," "estimate," "continue," "predict," "forecast,"
"project," "plan," "intend" or similar expressions, or statements
regarding intent, belief, or current expectations, are
forward-looking statements. While the Company believes these
forward-looking statements are reasonable, undue reliance should
not be placed on any such forward-looking statements, which are
based on information available to us on the date of this release.
These forward looking statements are based upon current estimates
and assumptions and are subject to various risks and uncertainties,
including without limitation, our ability to generate revenue or
achieve profitability; our ability to obtain additional financing
on acceptable terms, if at all; our ability to repay our
outstanding debt; the potential issuance of a significant number of
shares to our convertible note holders which will dilute our equity
holders; fluctuations in the results of our operations from period
to period; general economic and financial conditions; our ability
to anticipate changes in popular culture, media and movies, fashion
and technology; competitive pressure from other distributors of
content and within the retail market; our reliance on and
relationships with third-party production and animation studios;
our ability to market and advertise our products; our reliance on
third-parties to promote our products; our ability to keep pace
with technological advances; our ability to protect our
intellectual property and those other risk factors set forth in the
“Risk Factors” section of the Company’s most recent Annual Report
on Form 10-K and in the Company's subsequent filings with the
Securities and Exchange Commission (the "SEC"). Thus, actual
results could be materially different. The Company expressly
disclaims any obligation to update or alter statements whether as a
result of new information, future events or otherwise, except as
required by law.
INVESTOR RELATIONS
CONTACT:
ir@gnusbrands.com
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/c21cd82d-6065-4fb5-97c5-b99e8de2f260
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