WildBrain selling majority stake in TV business to IoM Media in $28m deal 

Canadian studio group WildBrain has signed an agreement to offload two-thirds of its television broadcast business to IoM Media Ventures, a kids-focused studio based in Nova Scotia.  

Josh Scherba

The transaction, which still needs to be approved by Canada’s TV regulator, the Canadian Radio-television and Telecommunications Commission (CRTC), will see IoM become the majority owner (66.6%) of linear networks Family Channel, Family Jr, WildBrainTV and Télémagino. 

Under the deal, WildBrain said it expects to receive more than US$28m (C$40m) over the next four years through up-front and deferred purchase consideration, minority participation distributions, content licensing and other fees. It will continue to invest in the channels through its minority stakeholder position. 

The companies said they expect the deal to close in three-to-six-months.  

With the new structure, WildBrain will retain a 33.3% stake in the channels but, crucially, no longer be subject to the Broadcasting Act rule that prevents Canadian broadcasting businesses and assets from being majority owned by non-Canadian companies. WildBrain said the move would permit it to “remove, in due course, its variable voting share structure currently applicable to non-Canadian shareholders.” 

WildBrain added that there are no planned changes to the channels’ management or workforce.  

IoM’s deal is backed by MEP Capital, a media and entertainment focused private investment firm with which it is partnered.  

“As we continue to strategically focus on driving high-growth areas for key global franchises and partnerships, this transaction is a critical step forward in simplifying our business,” said WildBrain president and CEO Josh Scherba. 

“Financially, we believe it strikes a balance between economic participation for WildBrain while benefiting our leverage profile over the long term. We’re confident that, with IoM, the Channels will pass to a strong independent Canadian studio. As a partner with IoM, we look forward to working with them to uphold the prominent legacy of these channels with a dedication to delivering best-in-class content for Canadian families.” 

IoM president and CEO Dana Landry said: “We’re thrilled to deepen our partnership with WildBrain, and we look forward to integrating these Channels and resources into our ecosystem after close of the transaction to accelerate growth as we look to invest boldly in content and expand our footprint in the kids’ and family entertainment space.” 

Matt Cohen, who is a partner at MEP Capital, said: “We have been a proud supporter of IoM since 2019 and are thrilled to strengthen that partnership through this investment. We look forward to continuing to collaborate with IoM and to working alongside both IoM and WildBrain to create first-class kids’ and family content.”