WildBrain (WILD) M&A Announcement summary

Deal rationale and strategic fit

• Sale of a 41% stake in Peanuts for $630 million CAD monetizes a minority interest at a high valuation, crystallizing brand value and enabling a strategic shift toward wholly owned, higher-margin brands and digital-first engagement.

• Eliminates all debt, saving approximately $50 million annually in interest and restoring capital flexibility for reinvestment in fast-scaling, high-margin franchises and digital content.

• Maintains multi-year service agreements for Peanuts licensing, production, and content, ensuring ongoing revenue streams and continued brand involvement.

• Strategic simplification and streamlined focus align with long-term value creation, platform scaling, and operational efficiency.

Financial terms and conditions

• Sale of 41% interest in Peanuts to Sony for $630 million CAD in cash, representing a 23x fiscal 2025 attributable EBITDA multiple and 15x recognized FY2025 EBITDA.

• Proceeds fully repay all debt, saving $50 million annually in interest and leaving over $40 million in cash surplus.

• Aggregate return from Peanuts stake exceeds $1 billion CAD since 2017, with continued ownership of other high-return assets.

Synergies and expected cost savings

• Debt elimination results in significant interest savings and capital flexibility for reinvestment and growth.

• Annual interest savings more than double the free cash flow previously earned from the Peanuts stake.

• Focus on wholly owned IP increases contribution margins and cash flow, with no leakage to co-owners.

• Clean balance sheet enables $50–$100 million investment in growth opportunities.