4Kids considers sale

New York-based entertainment firm 4Kids is “evaluating its strategic options” which may include a sale of the company or its assets.

The company is best known as a licensor and distributor of kids brands such as Pokemon and Teenage Mutant Ninja Turtles, and its CW4Kids block on The CW and former 4Kids TV block on Fox.

The company put out a statement today claiming that its board of directors had retained management consultants Montgomery & Co to assist it in its evaluation of strategic alternatives.

“Given recent developments in our business and in the current macroeconomic environment, we have decided to retain a financial advisor to assist the Board in evaluating all strategic options available to us as a company,” said Alfred Kahn, chairman and CEO of 4Kids Entertainment.

“The Board expects to carefully weigh all viable strategic alternatives that may be identified by its financial advisor potentially including, but not limited to, asset sales, alliances with strategic partners, and/or a sale of the Company through a merger or other corporate transaction.”

A company spokesman said that he would not be commenting further at this stage.

The news follows the company reducing its headcount by 15% in December to cut costs. Its revenues dropped to US$10.5m for Q1 this year, compared to US$15m in the same period last year.

Until late last year 4Kids ran two programming blocks on TV: the CW4Kids on The CW and 4Kids TV on Fox, but the latter ended in December.

The company is believed to have struggled with competition from the big three – Disney, Turner and Nickelodeon – and the loss of the Fox contract.