DHX to sell animation studio

Canadian children’s content giant DHX Media is selling its Halifax animation studio as part of its ongoing effort to reduce overheads.

Michael Donovan

DHX said the sale would streamline the company’s production operations, which have come under focus following a strategic review that identified a number of cost-saving measures that the firm could take.

The sale is expected to close on or around December 31 this year. It is subject to customary closing conditions, applicable third-party consents and the execution of certain ancillary agreements.

“The sale will generate operating efficiencies by consolidating animation production, and aligns with our objectives of rationalising costs, simplifying our organisation and focusing resources,” said Michael Donovan, CEO and executive chairman of DHX Media.

DHX Media is headquartered in Halifax. The sale does not include comedy show This Hour Has 22 Minutes, which continues to be owned by DHX Media and produced in Halifax.

DHX concluded its strategic review in September, resulting in the reduction of its development slate, a focus on premium originals and greater investment in shortform for its YouTube business WildBrain.

The firm was formed in 2006 through the merger of Decode Entertainment and Halifax Film Company and has since become one of the world’s largest producers and distributors of children’s shows. It also operates Canadian networks Family Channel, Family CHRGD, Family Jr and Télémagino.