WildBrain to get further investment; CAA-GBG secures Peanuts for China and Asia.
DHX Media has concluded the strategic review of its business, with key findings involving the Peanuts brand and WildBrain.
As part of the review, the company has signed a multi-million-dollar agency agreement for Peanuts in China and Asia with CAA Global Brand Management Group through to June 2023. This is expected to contribute a 35% increase in revenue for Peanuts Worldwide from the region over its term.
This follows the previously announced sale of a minority stake in Peanuts to Sony for $235.6 million (US$178.0m).
In addition, DHX Media has also refocused its content strategy to prioritise investment in WildBrain, and the development of premium content for major streaming services and broadcasters.
Additionally, as an outcome of the strategic review, DHX Media’s board of directors has suspended the company’s quarterly dividend, effective immediately, freeing up approximately $10 million in annual funds, to invest in the WildBrain business and to continue paying down debt.
“The strategic review marked the end of an important stage in the evolution of DHX Media,” said Michael Donovan, executive chair and ceo, DHX Media. “In the first stage of the Company, we grew rapidly by acquisition to assemble a world-leading library of children’s and family content.
“In the second stage, we began to upgrade the necessary team, systems and processes to monetise that portfolio in the global market.”
Michael continued: “We are well positioned to enter our next stage of growth, focused on what we identified during the strategic review as the two largest opportunities for kids’ and family content: accelerating investment in our WildBrain network to capitalise on the rising popularity of kids’ content on YouTube; and better leveraging our IP portfolio to produce premium originals for major streaming services.
“We believe this refocusing of our strategy will allow us to deliver significant growth, while generating free cash flow to pay down debt.”