WildBrain sold majority stake in television broadcast business to IOM Media

WildBrain has signed a definitive agreement to sell 66 2/3% of its television broadcast business, including Family Channel, Family Jr., WildBrainTV and Télémagino, to IoM Media Ventures, 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.”