BEVERLY HILLS and TORONTO — California-based children’s media company Genius Brands International is acquiring Canadian animation production company Wow! Unlimited Media in a deal worth approximately US$53 million in cash and stock, the two companies announced today.
Wow! Unlimited Media is headquartered in Toronto and has offices and studios in Vancouver, Los Angeles and New York. Its Los Angeles-based Frederator Studios is known for producing Adventure Time, The Fairly OddParents and Castlevania, while Vancouver-based Mainframe Studios’ productions include Madagascar: A Little Wild and Barbie Dreamhouse Adventures.
In addition to the animation studios, the acquisition includes Wow’s Channel Frederator Network, which is a YouTube-based network with 2,500 ad-supported channels, according to a press release.
“The acquisition of Wow! substantially accelerates the financial growth of Genius Brands, delivering on our promise to shareholders to execute meaningful and accretive acquisitions, as we seek to rapidly consolidate the marketplace and become the foremost producer, broadcaster, and consumer product licensor of high-quality children’s entertainment in the world,” said Andy Heyward, chairman and CEO of Genius Brands, in the press release.
“I have known and worked with Wow! chairman and CEO Michael Hirsh throughout my career, and there is nobody more talented, accomplished or well regarded. His track record of many hits includes the first Star Wars animated programs, Magic School Bus, Care Bears, Babar, Johnny Test, and Beetlejuice, among others,” Heyward said.
As part of the acquisition agreement, Hirsh is joining Genius Brands’ board of directors and will continue his responsibilities for Mainframe and Frederator Studios, including networks and platforms, according to the release.
“I’m excited to work with Andy and the Genius Brands team. This is a powerful partnership that brings immediate and significant value for shareholders,” said Hirsh, in the release.
“We bring production capacity, new IP, and a robust and profitable YouTube Network with over a billion views per month. Genius Brands, with Kartoon Channel!, has a fully distributed footprint where our content can thrive and also help Kartoon Channel! itself expand,” he said.
“Genius Brands’ world class consumer product licensing team led by Kerry Phelan, will enable us to monetize all of these great characters and brands. This transaction represents the culmination of our extensive strategic review process. We feel that this is a very attractive opportunity for our shareholders with significant potential upside in the months and years ahead.”
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Image supplied by Genius Brands International.
