Classic Media Founders Launch New Venture

CHICAGO, January 18: The private-equity firm GTCR has
entered into a partnership with the founders of Classic Media, Eric Ellenbogen
and John Engelman, to form Boomerang Media.

The new company will be dedicated to the acquisition,
management and exploitation of entertainment copyrights and related
intellectual property across all media. GTCR plans to invest up to $200 million
in equity capital in the venture, which will be run by Ellenbogen and Engelman
as co-CEOs.

The duo founded Classic Media in May 2000, building it into
one of the largest libraries in the children’s and family genre, with
franchises such as Rudolph the Red-Nosed Reindeer, Casper the Friendly Ghost,
Lassie, The Lone Ranger, Underdog, George of the Jungle, Veggie Tales and Rocky & Bullwinkle.
Classic Media was sold to the U.K.’s Entertainment Rights last year. Ellenbogen
and Engelman also served as co-CEOs of Broadway Video Entertainment, a manager
of film and television libraries founded by Saturday Night Live creator Lorne Michaels. In addition, Ellenbogen
acted as president and CEO of Marvel Entertainment, where he was responsible
for establishing a long-term film deal with Sony Pictures for the Spiderman franchise.

“We are excited to partner with Eric and John to create a
company with such vast potential,” said GTCR Principal Bruce Rauner. “Their
combined talent and proven ability to work together to build dominant
businesses in this niche sector bodes well for the future of Boomerang Media
and its key stakeholders.”

“We are looking forward to working with GTCR to build
Boomerang Media into a major competitor in media content ownership and
exploitation,” Ellenbogen said.

“GTCR has a successful history of helping build
industry-leading companies through growth and acquisition, and we believe that
they will be an exceptional long-term partner for Boomerang Media,” Engelman
added.

“The management and exploitation of intellectual property
rights for iconic entertainment franchises is a unique space in which we
continue to see a number of intriguing investment opportunities,” added GTCR’s
VP, Eric Sondag. “Partnering with Eric and John, true industry veterans with a
proven track record of building successful media businesses, positions us to
pursue a variety of opportunities in this attractive industry.”