Wanda Studios buys out Sony’s stake in Octonauts after legal dispute
VSP now controls 100% of the Octonauts franchise
China’s Wanda Studios has completed a full buy-out of the Octonauts franchise following a long-running legal dispute with Sony Pictures Television (SPT).
Under the deal, Wanda Studios’ UK-based subsidiary Vampire Squid Productions (VSP), which already owned a controlling 51% stake in the property, acquired the remaining 49% in the franchise.
The 49% was previously held by Silvergate Media, which was acquired by SPT in 2019 and later rebranded as Sony Pictures Television – Kids.
In 2017, Wanda acquired 51% of VSP. The agreement included an option clause for Wanda to buy the remaining 49% at a set valuation based on financial performance.
When SPT bought Silvergate in 2019, the rights to Octonauts were placed under SPT’s Columbia Pictures, which told Wanda that it planned to exercise the option agreement and sell the 49% stake for US$87.4m, according to Variety. However, Wanda said SPT had inflated the value of the stake, prompting the legal dispute.
Last year, following years of legal back and forth in the UK, the High Court of Justice in London said Wanda must pay Columbia Pictures/SPT US$49m for the stake.
With VSP now controlling 100% of the Octonauts franchise, it will serve as the sole global operator and rights holder internationally.
VSP and Wanda Studios said they are talking with international platforms about the franchise’s “next global home,” and have launched sales of the finished seventh and eighth seasons, spanning 52 episodes.
Strategy and sales are being handled via a new partnership with HomeWorld Entertainment, which is described as a “global IP incubator and accelerator.” Terry Chow, who serves as chief operating officer of VSP and VP of Wanda Studios, will work alongside HomeWorld Entertainment’s Michael Ikeda, Tai Truesdell and Simon Swart to expand the franchise globally.
The Octonauts property began as a picture book series, created by Vicki Wong and Michael C Murphy, in 2006. The edutainment series follows Captain Barnacles, Kwazii, Peso and their undersea crew on daring adventures to explore, rescue and protect ocean life.
“The Octonauts is the flagship brand for Wanda Kids, and we know that children and families around the world will be thrilled by where we are taking this beloved franchise,” said Chow.
“Together, we’re charting a bold new course – expanding and consolidating The Octonauts into new territories, new stories and new experiences that will inspire the next generation of young explorers.”
Swart, Homeworld’s CEO and managing partner, added: “With global rights now consolidated under Wanda Studios and Vampire Squid Productions, The Octonauts is positioned for a new era of platform partnerships and franchise consolidation and expansion.”
