Scholastic acquiring 9 Story for $186m in major kids’ entertainment deal

Daniel Tiger’s Neighborhood is among 9 Story’s key brands
American children’s book publisher Scholastic is set to acquire Toronto-based 9 Story Media Group for around US$186m.
Through the deal, Scholastic said it will acquire 100% of the economic interest and a minority of voting rights in 9 Story.
The companies said the agreement would significantly expand the opportunities for production and global licensing of Scholastic IP, with 9 Story’s founding CEO and president Vince Commisso continuing to lead the Canada-based company, which has its main bases in Toronto, Dublin and Bali.
Assets within 9 Story include animation studio Brown Bag Films and its international distribution division, 9 Story Distribution International, which represents more than 5,000 half-hour episodes of 2D and 3D programming across animation and live action. Its key brands include Daniel Tiger’s Neighborhood, Karma’s World, A Kind of Spark and Super Why.
For 9 Story, the deal comes after it recently acquired fellow Toronto-based kids’ entertainment company Portfolio Entertainment.
The deal represents an expansion of the working relationship between the companies, which have previously collaborated on projects including Clifford the Big Red Dog on (PBS Kids, Prime Video) and Eva the Owlet (Apple TV+).
The deal has already been approved by both companies’ boards of directors. It remains subject to a receipt of a satisfactory opinion by the Minister of Canadian Heritage and several other customary closing conditions. Scholastic said it expects to close the transaction by June 1, with the company funding the acquisition from its available cash and its revolving credit facility.
According to numbers supplied by the companies, 9 Story recorded revenue of approximately US$104m in its most recent fiscal year, ending August 31, 2023.
Scholastic president and CEO Peter Warwick said: “This highly strategic combination, adding 9 Story’s industry-leading capabilities with Scholastic’s trusted brand and proven ability to create iconic children’s series and franchises, has tremendous potential to build deeper connections with young people through our stories, as the pages of our books come to life on screens and through merchandising.
“At its core, Scholastic’s 360-degree content creation strategy is about engaging children with reading, and we have introduced our stories to generations of kids by reaching them where they are.”
Commisso added: “We’ve been fortunate to work with Scholastic for decades, going back to my own start with the family-favourite production, The Magic School Bus. The combination of our global studios, sales and distribution capabilities with Scholastic’s existing media business, iconic name and unique capabilities opens even more opportunities to deliver compelling stories and build impactful brands for audiences worldwide.
“We’re eager to begin bringing together our complementary talents to enhance Scholastic’s position as a top developer, producer and distributor of kids’ and family content.”
Iole Lucchese, board chair and president at Scholastic Entertainment, said: “By bringing together Scholastic’s knowledge of what kids love and our proven track record of successful media development with 9 Story’s top-rated global production, distribution and licensing capabilities, I am confident we can meet the continued, strong demand for high-quality kids’ and family entertainment.
“Today’s announcement presents a huge opportunity to expand the footprint of Scholastic’s authors and illustrators and to build global franchises on every platform, creating more value for the creators and for our shareholders.”