Scholastic Paying $183 Million to Acquire Full Economic Interest in Animation Studio 9 Story Media

variety.com:

Todd Spangler NY Digital Editor Scholastic is boosting its entertainment biz: The kids media and publishing company announced a $186 million deal to acquire full economic interest in 9 Story Media Group, a leading children’s content producer and distributor.

Through the investment, Scholastic will acquire 100% of the economic interest in and a minority of voting rights in 9 Story Media, the animation studio behind TV shows including “Doc McStuffins” (pictured above), “Daniel Tiger’s Neighborhood,” “Octonauts,” “Wild Kratts” and “The Magic School Bus Rides Again.” The companies said the deal “solidifies” the more than two decades of collaboration between Scholastic Entertainment and 9 Story.

The investment has been approved by both companies’ boards of directors and the shareholders of 9 Story. The deal is expected to close in Scholastic’s fiscal 2025 first quarter, which begins on June 1, 2024, subject to customary closing conditions. “This highly strategic combination, adding 9 Story’s industry-leading capabilities with Scholastic’s trusted brand and proven ability to create iconic children’s series and franchises, has tremendous potential to build deeper connections with young people through our stories, as the pages of our books come to life on screens and through merchandising,” Peter Warwick, Scholastic’s president and CEO, said in announcing the pact.

9 Story’s divisions include award-winning studio Brown Bag Films; 9 Story Distribution International, which represents more than 5,000 half-hour episodes of animated and live-action programming for kids, including “Clifford the Big Red Dog” and “A Kind of Spark”; and 9 Story Brands, the consumer products division, which builds global kids’ brands both on- and.