Transaction secures strong Canadian home for
channels while advancing WildBrain's strategy to simplify its
business and focus on key franchises
TORONTO, Dec. 18,
2024 /CNW/ - WildBrain Ltd. ("WildBrain" or
the "Company") (TSX: WILD), a global leader in kids' and
family entertainment, has signed a definitive agreement ("Sale
Agreement") to sell 66 2/3% of its television broadcast
business ("Channels"), including Family Channel, Family Jr.,
WildBrainTV and Télémagino, to IoM Media Ventures Inc.
("IoM"), an independent, Canadian-owned children's studio
based in Halifax, Nova Scotia. The
transaction, which is subject to customary closing conditions, is
expected to close in approximately three to six months, pending
approval by the Canadian Radio-television and Telecommunications
Commission (CRTC). The proceeds from the transaction will be used
by WildBrain primarily to pay down debt.
Under the terms of the Sale Agreement, WildBrain expects to
receive more than $40 million over
the next four years from this transaction and its continuing
involvement in the Channels, in the form of up-front and deferred
purchase consideration, minority participation distributions,
content licensing and other fees. Under the new structure,
WildBrain will retain 33 1/3% ownership of the Channels and will no
longer be subject to applicable restrictions under the Broadcasting
Act as relates to non-Canadian ownership, which will permit
WildBrain to remove, in due course, its variable voting share
structure currently applicable to non-Canadian shareholders.
WildBrain remains focused on operating the Channels during
the transition period. At this time, there are no planned changes
to management, the workforce or location of operations for the
Channels. Any future adjustments, if necessary, will be
thoughtfully considered based on the evolving needs of the
business.
Josh Scherba, President and CEO
of WildBrain, said: "As we continue to strategically focus on
driving high-growth areas for key global franchises and
partnerships, this transaction is a critical step forward in
simplifying our business. Financially, we believe it strikes a
balance between economic participation for WildBrain while
benefiting our leverage profile over the long term. We're confident
that, with IoM, the Channels will pass to a strong independent
Canadian studio. As a partner with IoM, we look forward to working
with them to uphold the prominent legacy of these Channels with a
dedication to delivering best-in-class content for Canadian
families."
Dana Landry, President and CEO of
IoM Media Ventures Inc., said: "We're thrilled to deepen our
partnership with WildBrain, and we look forward to integrating
these Channels and resources into our ecosystem after close of the
transaction to accelerate growth as we look to invest boldly in
content and expand our footprint in the kids' and family
entertainment space."
IoM partnered with MEP Capital ("MEP"), a private investment
firm focused on the media, entertainment, content and sports
sectors, and an existing IoM investor, to provide financial backing
for the transaction.
Matt Cohen, Partner at MEP
Capital, said: "We have been a proud supporter of IoM since 2019
and are thrilled to strengthen that partnership through this
investment. We look forward to continuing to collaborate with IoM
and to working alongside both IoM and WildBrain to create
first-class kids' and family content."
WildBrain maintains its Fiscal Year 2025 outlook until after the
transaction has closed.
For more information, please contact:
Investors: Kathleen Persaud – VP,
Investor Relations, WildBrain
kathleen.persaud@wildbrain.com
+1 212-405-6089
Media: Shaun Smith – Sr.
Director, Global Communications & Public Relations,
WildBrain
shaun.smith@wildbrain.com
+1 416-977-7230
About WildBrain
At WildBrain we inspire imaginations through the wonder of
storytelling. As a leader in 360° franchise management, we are
experts in content creation, audience engagement and global
licensing, cultivating and growing love for our own and partner
brands around the world. With approximately 14,000 half-hours of
kids' and family content in our library—one of the world's most
extensive—we are home to such treasured franchises as Peanuts,
Teletubbies, Strawberry Shortcake, Yo
Gabba Gabba!, Inspector Gadget and Degrassi. WildBrain's
mission is to create exceptional entertainment experiences that
captivate and delight fans both young and young at heart.
Our studios produce such award-winning series as The Snoopy
Show; Snoopy in Space; Camp Snoopy; Strawberry Shortcake: Berry in
the Big City; Sonic Prime; Chip and Potato; Teletubbies Let's
Go! and many more. Enjoyed in more than 150 countries on over
500 platforms, our content is everywhere kids and families view
entertainment, including YouTube, where our network has garnered
approximately 1.5 trillion minutes of watch time. Our television
group owns and operates some of Canada's most loved family entertainment
channels. WildBrain CPLG, our leading consumer-products and
location-based entertainment agency, represents our owned and
partner properties in every major territory worldwide.
WildBrain is headquartered in Canada with offices worldwide and trades on
the Toronto Stock Exchange (TSX: WILD). Visit us at
wildbrain.com.
About IoM Media
Island of Misfits (IoM) is one of North America's leading production + animation
studios, with a strong focus on original, premium content
development and production. Founded in 2018 by industry veteran
Dana Landry, IoM is based in
Halifax with offices in
Toronto and Los Angeles. At IoM's 3D/CG Studio, the team
has produced series for many of the world's leading content
creators. Series produced by IoM can be seen on major networks and
streaming platforms including Amazon, Netflix, Peacock, CBC and PBS
Kids.
About MEP
Headquartered in New York, MEP
Capital is a private investment firm focused on providing flexible
capital solutions and operational expertise to businesses in the
media, entertainment, content and sports sectors. MEP is a
long-term investor that provides financing through funds committed
by its limited partners, which include institutions, family offices
and high-net-worth individuals.
Forward-Looking Statements
This press release contains "forward-looking statements" under
applicable securities laws with respect to the Company. Although
the Company believes that the expectations reflected in such
forward-looking statements are reasonable, such statements involve
risks and uncertainties and are based on information currently
available to the Company. Actual results or events may differ
materially from those expressed or implied by such forward-looking
statements. Factors that could cause actual results or events to
differ materially from current expectations, among other things,
include the availability of and cost of financing, general economic
and market conditions and the impact of such conditions on the
industries in which WildBrain operates, competition and the
potential impact of industry mergers and acquisitions, market
factors, WildBrain's ability to identify and execute anticipated
production, distribution, licensing and other contracts,
contractual counterparty risk, the ability of WildBrain to realize
the expected value of its assets, supply chain and other related
disruptions, and risk factors discussed in materials filed with
applicable securities regulatory authorities from time to time
including matters discussed under "Risk Factors" in the Company's
most recent Annual Information Form and annual Management
Discussion and Analysis. These forward-looking statements are made
as of the date hereof, and the Company assumes no obligation to
update or revise them to reflect new events or circumstances,
except as required by law.
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SOURCE WildBrain Ltd.