01:03 PM EST, 12/19/2024 (MT Newswires) -- Wildbrain ( WLDBF ) has signed an agreement to sell two-thirds of its TV broadcasting business, including Family Channel, Family Jr., WildBrain TV, and Telemagino, to IoM Media Ventures, an independent children's studio in Halifax run by a former CEO/CFO of Wildbrain ( WLDBF ). The deal is expected to close in 3-6 months.

The company expects to receive over $40 million over the next four years in the form of an upfront payment, deferred purchase consideration, minority distributions, content licensing, and other fees. By reducing its TV stake to a third, Wilbrain will no longer be subject to any restrictions applicable to the Broadcasting Act as it relates to non-Canadian ownership and this will permit it to remove, in due course, its variable voting share structure currently applicable to non-Canadian shareholders, notes National Bank.

Wildbrain ( WLDBF ) is rated Sector Perform. Target raised to $1.50 (from $1.25).

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