ER to Acquire Classic Media

LONDON/NEW YORK, December 14: Entertainment Rights has
reached a deal to acquire 100 percent of Classic Media, home to such brands as Lassie and Casper the Friendly Ghost, for $210 million.

The acquisition is intended to create a kids’ and family brand
powerhouse encompassing, among others, Postman Pat, Basil Brush, Rudolph the Red-Nosed
Reindeer, Lassie, Casper the Friendly Ghost, Dick Tracy, George of the Jungle,
Jim Jam & Sunny, Gerald McBoing Boing, Lone Ranger, Rupert Bear, He-Man,
She-Ra and Veggie Tales. The combined group will be home to about 8,700
episodes of kids’ and family content.

The acquisition, subject to shareholder approval at ER’s
Extraordinary General Meeting on January 8, is also intended to boost the
presence of Classic’s brands in Europe and other international markets, and
give ER a stronger foothold in the U.S. market. Classic is a partner with ION
Media Networks, NBC Universal, Corus Entertainment and Scholastic Entertainment
in Children’s Network Venture, which operates the Qubo block on NBC, I network
and Telemundo. Qubo will launch as a full-scale channel in January.

Mike Heap, the CEO of Entertainment Rights, noted, “This
acquisition results in the creation of a major global force in children’s and
family content, characters and brands. It will unite the characters and brands
of ER and Classic, creating one of the strongest portfolios of contemporary
classic and new children’s brands in the world. The acquisition transforms ER’s
presence in the world’s largest media market—the U.S.—and offers an
unprecedented opportunity to air ER’s programming on U.S. television and to
sell its merchandise through American retail outlets. Similarly we will be
exploiting Classic’s high level content for non-U.S. markets. There are strong
cross-selling opportunities and synergies across the two portfolios.”