Blue Ant completes $65m acquisition of Thunderbird Entertainment

Blue Ant Media has finalised a deal worth roughly C$89m (US$65m) to acquire fellow Canadian studio Thunderbird Entertainment.

Michael MacMillan

CEO Michael MacMillan said the transaction “reinforces our momentum and long-term value creation strategy” following its listing on the Toronto Stock Exchange (TSX) last summer and subsequent acquisition of streamer MagellanTV.

Under the agreement, Blue Ant has acquired all the outstanding Thunderbird shares in exchange for around 5.9 million subordinate voting shares of Blue Ant and C$40m in cash. Thunderbird, which has traded on the TSX Venture Exchange since 2018, will delist shortly.

The transaction had initially faced some pushback from shareholders, with an anonymous group launching a campaign urging stockholders to block it.

The efforts ultimately did not make a difference as the transaction received shareholder approval last week. Earlier this week, the Supreme Court of British Columbia approved the deal while the Competition Bureau issued a “no-action” letter.

With the acquisition, Blue Ant takes control of Thunderbird’s animation studio Atomic Cartoons, its unscripted production business Great Pacific Media and its library, among other business units. It will also gain a major footprint on Canada’s west coast, where it has not had a big presence before.

The assets will now become part of the Blue Ant portfolio, which consists of production arm Blue Ant Studios, distribution and rights division Blue Ant Studios, prodcos Insight Productions, Proper Television and Jam Filled Entertainment, streamer Love Nature and a suite of linear and digital channels.

Blue Ant said it would find C$7m in cost synergies in the first 12 months after the deal closes and look for saving opportunities beyond that. As previously announced, Thunderbird CEO and board chair Jennifer Twiner McCarron has been named president of animation, kids and young-adult at Blue Ant Studios.

“We are pleased to close this significant acquisition which is both strategic and accretive,” said MacMillan.

“Thunderbird expands our financial and operational scale and adds highly complementary capabilities, enhancing our ability to develop, package and monetise content across multiple platforms.

Twiner McCarron added: “This transaction is a strategic step that strengthens our ability to grow and innovate. Joining the Blue Ant team expands our global reach and brings together highly complementary businesses with shared goals, aligned cultures and a common commitment to creativity and excellence. Together, we gain the scale and resources to maximise our intellectual property and invest in the next generation of content.”