WildBrain & IoM Renegotiating Channel Portfolio Deal

WildBrain is renegotiating the deal it sealed with IoM Media Ventures for the sale of its broadcast channels business amid a carriage dispute with Bell Media.

In December, WildBrain clinched a deal to sell a majority stake in its channels portfolio, including Family Channel, Family Jr., WildBrainTV and Télémagino, to IoM. Since then, WildBrain has been unable to reach a new carriage deal with Bell Media and, as such, is renegotiating certain aspects of the sale agreement with IoM.

“Bell’s decision to remove the channels from its distribution service will require us to revise certain aspects of the transaction with IoM, but we are optimistic we can arrive at a deal that works for both of us,” said Josh Scherba, president and CEO of WildBrain. “As one of only a few independent companies operating kids’ and family channels in Canada, we are greatly disappointed that we could not come to an arrangement with Bell to continue supporting the channels. For almost four decades, our channels have played a vital part in the Canadian content landscape, providing opportunities for Canadian producers and artists to share their stories with audiences across the country. In fact, in just the last five years, our Channels have greenlit more than 15 seasons of original Canadian productions.”

Scherba continued, “WildBrain remains strong and vibrant as a leader at global scale in the kids’ and family entertainment industry. We have operations and partnerships worldwide generating robust revenues across our 360-degree capabilities in consumer products licensing, content production and audience engagement. The sale of the channels is part of an overall strategic objective to simplify and streamline our business to focus on key franchises, such as Peanuts, Strawberry Shortcake and Teletubbies. This strategy has not changed, and we have a clear path ahead as we continue in our commitment to harnessing high-growth opportunities and cash generation. Once we complete the IoM transaction, or exercise alternate options regarding control of the channels, WildBrain will no longer be subject to applicable Canadian control restrictions under the Broadcasting Act. We then intend, in due course, to remove our variable voting structure currently applicable to non-Canadian shareholders. Moving forward, simplifying our voting structure to a single class will be a highly meaningful milestone in our trajectory, providing greater strategic flexibility and opportunities for WildBrain.”