Canadian studio Boat Rocker announced it has reached an agreement to acquire the remaining 30% of unscripted production company Insight Productions for around C$7.5m ($5.5m). Boat Rocker purchased a 70% controlling ownership stake in Insight in May 2018.
The company announced the deal during the presentation of its second-quarter earnings results, where it reported a net income of $41.9 million in Q2, which includes the gain on the sale of Untitled in June for C$51.6m, versus a net loss of $5.8 million in Q2 2023, an increase of $47.7 million. Year-to-date net income of $39.4 million versus a loss of $15.3 million in the comparative year period, an increase of $54.7 million or 357.6%
Boat Rocker Media CEO, John Young, stated: "Despite the media and entertainment industry continuing to face headwinds, our performance this quarter demonstrates solid deliveries from our Canadian unscripted business and a significant increase in cash reserves due largely to the recent sale of Untitled Entertainment. By using our capital strategically, including expanding our long-standing relationship with Insight Productions and deploying funds through our NCIB to repurchase our subordinate voting shares where possible, we remain committed to building shareholder value for the long-term. In parallel, as well as continuing to focus on targeted content investments, we will be looking to more proactively manage our cost base in the back half of the year."
Boat Rocker said the purchase price of the Minority Shareholder's shares will be based on fair market value as mutually agreed by the parties or as determined by an independent valuator. Boat Rocker anticipates that the closing of the transaction will be completed within 30 to 180 days following the determination of fair market value.
“Management believes that the carrying amount of the put option liability on [Boat Rocker’s] statement of financial position of C$7.5m at June 30, 2024 is a reasonable approximation of the fair market value of the non-controlling interest component,” added Boat Rocker.
Founded over 50 years ago and led by chairperson, CEO and executive producer John Brunton, Insight Productions is among Canada’s largest and longest-running production companies.