DHX pays $160m for Bell kids’ nets

DHX Media has acquired Canadian kids’ cable networks Family Channel, Disney XD and Disney Junior, the Halifax-based producer-distributor has announced.

Steven DeNure

The C$170m (US$160m) deal with former owner Bell Media includes both the English- and French-language feeds for Disney Junior. This is the first time DHX has moved into the channels business, aside from its YouTube presence.

The deal is expected to be financed with an expanded credit facility and cash, and is expected to close in 2014, pending approval by the Competition Bureau and the Canadian Radio-television & Telecommunications Commission (CRTC).

Family Channel has about 5.7 million subscribers and an English market share of 29.6% for viewers aged 2-17, according to Broadcast Bureau of Measurement data for broadcast year 2011/12.

DHX described it as “the most-viewed children’s channel in Canada.” Family gets 60% of its content from Disney and is a Category A channel, meaning all Canadian cabsat platforms must carry it.

Disney Junior (English) has approximately 4.9 million subscribers, representing a market share of 13.4% among its target audience of kids 2-7. The French-language feed has some 500,000 subscribers.

Michael Donovan

Ad-supported Disney XD, meanwhile, launched in 2011 and has about 4.5 million subscribers, representing a market share of 3.5% among its target audience of boys 6-12.

The acquired channels generated revenue of some C$81m and direct EBITDA of around C$27m in the year to August, according to DHX, and the past three years has seen revenue increase at a rate of 7%.

“The acquisition of these high-quality Canadian channels represents an exciting new addition to DHX, one that complements and enhances all areas of our business and positions us for our next stage of growth,” said Michael Donovan, CEO of DHX Media.

“Broadcasting is a natural extension for the company,” added Steven DeNure, president and chief operating officer of DHX. “The acquisition of Family Channel further enhances our ability to operate as a vertically integrated player in the global children’s content business.”

“Bell Media welcomes DHX Media to the broadcasting industry with their acquisition of Family, Disney XD, and Disney Junior,” said Kevin Crull, president of Bell Media. “With DHX Media, these brands will continue to flourish and enrich our television industry.”