Following the recent acquisition of Canada's WOW! Unlimited Media Inc., Genius Brands International, has announced that it has agreed to initially acquire a 28.6% interest in Your Family Entertainment (YFE) to be followed by a mandatory tender offer of the outstanding shares of YFE.
YFE is one of Europe's largest distributors and broadcasters of programs for children and families.
The YFE transaction, alongside the recent announcement of the acquisition of WOW! Unlimited Media, would significantly expand the Genius Brands catalog and give the company a streaming foothold outside the United States in Europe and the rest of the world.
The announcement was made jointly by Andy Heyward, chairman and chief executive officer, Genius Brands, and Dr. Stefan Piëch, chief executive officer, YFE.
Subject to YFE shareholder approval, YFE will be renamed Genius Family Entertainment and will operate its children's networks under the brand Kartoon Channel! Worldwide. YFE will maintain its independent listing on the Frankfurt Stock Exchange and run by the current Management Board of Dr. Piëch and Bernd Wendeln.
Dr. Piëch, who also sits on the Supervisory Board of Porsche Automobil Holding and Siemens Austria, will join Genius Brands' Board of Directors in the U.S.
Paul Robinson, former managing director, Disney Television International and senior vice president, Disney Channel Worldwide, will become Managing Director of Kartoon Channel! Worldwide and oversee the international buildout and growth of Kartoon Channel!
While at Disney Channel, Robinson was responsible for global programming and production strategy for Disney Channels Worldwide and founder of Toon Disney and Playhouse Disney Channels internationally. He was also managing director of Disney Television U.K., including four television channels. Robinson and his team will be based in London.
"We believe the strategic transaction with Germany's YFE added to the IP assets and earnings of Canada's WOW! Unlimited Media will present us with additional growth opportunities in furtherance of our goal of becoming the leading provider of quality and responsible children's entertainment in the world today, and for years to come," says Heyward. "We are excited to be working with Stefan and Bernd on the YFE side to drive and grow the business going forward. With Stefan's award-winning commitment to family-friendly content and Bernd's experience and network in the European market (e.g., ProSiebenSat.1 Group, Tele München Group), we look forward to jointly delivering content with a purpose to children worldwide. I have known and worked with Paul Robinson at the Walt Disney Company and saw how he built out the Disney Channel business worldwide. I believe that he can guide Kartoon Channel! Worldwide's international expansion, as we build the global children's business of the future."
"We are excited to participate in this transaction with Genius Brands and look forward to creating value for both our shareholders worldwide and for families who watch our award-winning shows," says Dr. Piëch. "Whether through our classic European titles like 'Fix & Foxi' and 'Albert,' or our U.S. produced titles like 'Fairly Odd Parents,' we believe deliver powerful content that kids love, which will be highly synergistic as we become part of Genius Brands and the growing global Kartoon Channel! banner. Moreover, Genius Brands' development and production expertise can reboot YFE's massive IP and create new franchises. We are fully committed to 'content with a purpose' and scaling positive, pro-environment, non-violent storytelling for children. By working together, we look forward to unlocking the full potential of our portfolio, distribution platforms and retail business worldwide."
Lou Fazio, former director, Walt Disney Television Acquisitions and Programming, will oversee the programming of the international channels, supporting Robinson on the development and rollout of the Kartoon Channel! content, as he does in the U.S.
The global rollout of consumer products based on the channel content will be supervised by Kerry Phelan, general manager and executive vice president, global franchise management, Genius Brands, who previously ran consumer products licensing worldwide for Lucasfilm, Pixar and DreamWorks.