Grows Pro-Forma Last-Twelve-Months (LTM) Revenues by over 1100%
Adds Growing Pipeline and Over
Acquisition Includes “Channel Frederator Network,” YouTube’s #1 Talent Driven Animation Network, with 2,500 Channels and over 1 Billion Advertiser Supported Monthly Views
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The Company will host a conference call at
“I have known and worked with WOW! Chairman and CEO
“In addition to the animation productions of WOW! today and the exciting new brand brought to the table for Genius Brands, WOW! has a massive social media footprint across YouTube,
WOW!’s Canadian production facilities enable a number of profitable synergies for the company via access to various federal and provincial tax credits, which will allow Genius Brands to transfer its current animation production at great savings from
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Highly Compelling Financial Benefits
The acquisition increases Genius pro-forma revenues for the last-twelve-months (LTM) by over 1100%On a stand-alone basis:
- WOW!’s LTM revenue was over
US$56 million - WOW!’s LTM EBITDA was over
US$5 million - WOW!’s 2020 EBITDA growth was over 45% year over year
WOW! has a robust animation business with consistent revenue and EBITDA growth, and strong visibility into future revenue with marquee clients and partners including Netflix, DreamWorks, Sony, Mattel, Spin Master, Moonbug, and Hulu.
Synergies and cost savings
The combination is expected to drive synergies on multiple fronts, including:
- WOW! in- house brands, currently unexploited, to now be monetized through Genius Brands’
Ad Sales , Global Distribution, and Consumer Product licensing units. - Cost-savings from delisting of the Canadian publicly listed WOW! entity and related regulatory, legal and operational expenses
Global Animation Powerhouse:
The combination creates an end-to-end animation ecosystem driving exceptional value for shareholders, including:
- Addition of two studios with strong track record of producing top end animation -
Frederator Studios (produced Adventure Time, FairlyOdd Parents, Powerpuff Girls, Dexter’s Laboratory, Castlevania) andMainframe Studios (producedMadagascar – aLittle Wild , Barbie Dreamhouse) - A captive animation production studio that can be leveraged for in-house production of Genius Brands’ properties, thus driving cost synergies
- Expanding audience demographics beyond kids into teens and young adult audiences and global social media platforms, with high-performing properties such as:
- Castlevania (Top 10 on Netflix)
- Bee and Puppycat (over 1 billion impressions across YouTube and social media)
- Catbug (over 200 million impressions on
TikTok )
Expanded leadership team
The transaction will result in an expanded global leadership team
Michael Hirsh , CEO of WOW! will join the Board of Directors of Genius Brands and continue his responsibilities for Mainframe,Frederator Studios , Networks and Platforms.
Expansion into High Growth Areas
The transaction expands Genius Brands’ business in multiple high-growth areas, including:
- Highly profitable, full-service animation sub-contract studio with continuing and reliable high-end clients
- Expansion into teen and young adult focused animation
- Addition of a large YouTube business to drive growth of Genius Brands’ overall advertising-video-on-demand (AVOD) business (the addition of the Channel Frederator Network, an animation and pop culture driven digital network with 1 billion+ average monthly views and 2,500+ creator driven channels)
Strong Commitment to
- Wow!’s Canadian content operations will continue as a distinct Canadian controlled business
- The transfer of animation production to
Canada is expected to benefit Genius Brands through Canadian Content incentives as well as Production Service Tax Credits and to provide direct benefits for Canadians through opportunities for Canadian animators and other production personnel
The Company will host a conference call at
About
Forward Looking Statements: Certain statements in this press release constitute "forward-looking statements" within the meaning of the federal securities laws. Words such as "may," "might," "will," "should," "believe," "expect," "anticipate," "estimate," "continue," "predict," "forecast," "project," "plan," "intend" or similar expressions, or statements regarding intent, belief, or current expectations, are forward-looking statements. While the Company believes these forward-looking statements are reasonable, undue reliance should not be placed on any such forward-looking statements, which are based on information available to us on the date of this release. These forward looking statements are based upon current estimates and assumptions and are subject to various risks and uncertainties, including without limitation, our ability to generate revenue or achieve profitability; our ability to obtain additional financing on acceptable terms, if at all; the potential issuance of a significant number of shares, which will dilute our equity holders; fluctuations in the results of our operations from period to period; general economic and financial conditions; our ability to anticipate changes in popular culture, media and movies, fashion and technology; competitive pressure from other distributors of content and within the retail market; our reliance on and relationships with third-party production and animation studios; our ability to market and advertise our products; our reliance on third-parties to promote our products; our ability to keep pace with technological advances; our ability to protect our intellectual property and those other risk factors set forth in the “Risk Factors” section of the Company’s most recent Annual Report on Form 10-K and in the Company's subsequent filings with the
MEDIA CONTACT:
pr@gnusbrands.com
INVESTOR RELATIONS CONTACT:
ir@gnusbrands.com
Genius Brands Announces Transformational Acquisition of WOW! Unlimited Media Inc. , Creating a Global Animation & Digital Media Powerhouse
Grows Pro-Forma Last-Twelve-Months (LTM) Revenues by over 1100%
Michael Hirsh , Chairman and Chief Executive Officer of WOW!
"This is a powerful partnership that brings immediate and enormous value for shareholders. We bring production capacity, new IP, and a robust and profitable YouTube Network with over a billion views per month."
2021 GlobeNewswire, Inc., source