WildBrain Finalizes Sale of Majority Stake in Broadcast Business to IoM Media Ventures

WildBrain Completes Major Transaction with IoM Media Ventures

In a significant move for the children's entertainment sector, WildBrain Ltd. has entered into a definitive agreement to sell a majority stake in its television broadcasting business. This strategic decision involves handing over approximately 66 2/3% ownership of various family-oriented channels, including Family Channel, Family Jr., WildBrainTV, and Télémagino, to IoM Media Ventures Inc., a prominent independent studio based in Halifax, Nova Scotia.

The agreement, which is currently subject to customary closing conditions, aims to finalize within the next three to six months, pending regulatory approval from the Canadian Radio-television and Telecommunications Commission (CRTC). The transaction is projected to bring WildBrain over $40 million in revenue over the next four years, which will primarily be allocated to debt repayment.

WildBrain's President and CEO, Josh Scherba, stated that this deal aligns with their commitment to streamline operations while focusing on growth in key franchises. He expressed confidence that IoM Media’s ownership will preserve the legacy of these channels and continue to deliver high-quality content tailored for Canadian families.

The sale is part of WildBrain’s broader strategy to declutter its business model and concentrate on content creation and audience engagement, ultimately contributing to its long-term financial health. With this agreement, WildBrain retains a 33 1/3% stake in the channels and will no longer be bound by non-Canadian ownership restrictions. This transition affords WildBrain the opportunity to explore more flexible voting structures for its international shareholders.

IoM Media Ventures is eager to integrate these networks into their portfolio, promising to leverage their resources for accelerated growth and expanded presence in the kids' entertainment market. Dana Landry, IoM's CEO, highlighted the potential for both companies to collaborate effectively in producing innovative and premium content.

The funding for this acquisition comes from MEP Capital, an investment firm with a strong focus on media and entertainment, indicating a robust financial backing for IoM as it takes this step forward. MEP’s partner, Matt Cohen, expressed excitement about collaborating with both WildBrain and IoM to elevate content that appeals to children and families alike.

As WildBrain continues to navigate this transition, there are currently no plans to alter management structures or operational locations within the channels during this process. The upcoming months will be crucial as the new ownership model begins to take shape, and WildBrain’s experience in producing award-winning content will remain essential during this evolution.

This deal marks a pivotal moment not only for WildBrain and IoM Media but also for the Canadian entertainment landscape, promising future innovations and a commitment to excellence in kid-friendly programming. WildBrain will maintain its fiscal outlook until the transaction is officially complete, reaffirming their commitment to transparency and diligence in this ongoing process.

WildBrain operates under the belief that quality storytelling fosters imagination and engagement, and their extensive library, which boasts around 14,000 hours of family content, underlines this mission. Iconic franchises such as Peanuts, Teletubbies, and Inspector Gadget highlight WildBrain's role as a leader in family entertainment both in Canada and globally.

As the industry anticipates this transition, all eyes will be on the results of the collaboration between WildBrain and IoM Media, paving the way for exciting developments in children's television.