Kids’ streamer Kidoodle.TV put up for sale as APMC’s receiver seeks rival bids

Kidoodle aimed to be seen as a safe streamer for kids

Canadian children’s streaming service Kidoodle.TV has been put up for sale as part of a court-ordered receivership process for its parent company, A Parent Media Co (APMC).

AlixPartners Restructuring, the court-appointed receiver of APMC and Kidoodle Inc, said on Thursday it was soliciting offers to buy or invest in the businesses and their assets, which also include live sports streamer Victory+. A November 20 deadline has been set for competing bids.

A stalking-horse offer, which establishes a baseline against which rival bids will be assessed, has been made by a group of APMC lenders who are also directly or indirectly directors of the company.

Under the bid, the group would pay US$2m towards debt owed to the Bank of Montreal (BMO), a secured creditor, while assuming the remaining BMO debt. The offer also includes a US$4m ‘credit bid,’ through which the purchaser would use its existing debt claim against APMC as part of the purchase price, rather than paying that amount in cash. Kidoodle’s assets would be acquired for a nominal US$1, although the overall transaction also includes cash payments and assumed debt.

The sale process comes around seven weeks after APMC and Kidoodle were placed into receivership following a financial crisis.

Private equity firm TriWest Capital Partners, which invested in APMC in 2022, was among the lenders involved in emergency financing for the company in June. The lenders subsequently sought to recover the money they were owed after a dispute over how their claims ranked against those of other creditors. APMC and Kidoodle consented to the receivership, and AlixPartners was appointed receiver on September 3.

The proposed buyer is represented by Dino DeLuca, a partner and chief operating officer at TriWest Capital Partners, who filed the receivership application on behalf of the lenders. The group advanced US$2m in June in exchange for a debt note with a principal value of US$4m. It is now seeking to use that US$4m claim as part of its offer to acquire the assets, with the debt to be considered fully repaid if the transaction closes.

The financial difficulties came to light amid a string of damaging press reports around AVoD platform Victory+, which had aggressively pursued sports rights, including deals to show games involving the National Hockey League’s Dallas Stars and Anaheim Ducks, and Major League Baseball’s Texas Rangers.

Earlier this year, teams began terminating deals with Victory+, while CEO Neil Gruninger left and the service subsequently went offline.

Unlike Victory+, Kidoodle.TV remains operational. The AVoD platform, launched in 2014 and available in around 160 territories, has positioned itself as a safe streaming environment for children, offering an alternative to the intensely algorithm-driven nature of general entertainment services.

According to AlixPartners, Kidoodle.TV has recorded more than 26 million lifetime app downloads. The platform is also supported by APMC’s proprietary advertising technology, including tools designed to ensure ads comply with children’s privacy rules, which form part of the assets being marketed to potential buyers.

The receiver said it is seeking offers for all or substantially all of the businesses’ assets, as well as proposals to invest in, restructure or recapitalise the companies. Offers for individual assets may also be considered under the court-approved sale process, it said.