WildBrain to Sell Its 41% Stake in Peanuts to Sony for $630 Million

Executive Summary

• WildBrain Ltd. signed a definitive agreement to sell its 41 % ownership in Peanuts Holdings LLC to Sony for C$630 million cash, fully repaying its senior secured credit facility and leaving a C$40 million+ cash surplus.
• The transaction eliminates all of WildBrain’s debt, saving roughly C$50 million in annual interest payments and providing capacity to invest C$50–100 million in high‑growth, cash‑accretive opportunities across wholly owned franchises and digital platforms.
• WildBrain will remain a multi‑year partner with Sony on Peanuts for licensing, production, and distribution, while also simplifying its share structure and pausing FY2026 guidance.

Key Details

• Transaction Value: C$630 million cash paid by Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc.
• Use of Proceeds:
• Full repayment of WildBrain’s Senior Secured Credit Facility (principal + fees).
• Retention of >C$40 million cash surplus for strategic reinvestment.
• Annual interest savings ≈ C$50 million, freeing cash flow for growth initiatives.
• Strategic Allocation: Planned investment of C$50–100 million into:
• Wholly owned franchises (e.g., Strawberry Shortcake, Teletubbies).
• Expansion of premium digital content network and advertising footprint (YouTube, FAST, AVOD).
• Emerging technologies to drive innovation and operational efficiencies.
• Ongoing Peanuts Partnership: WildBrain retains exclusive rights as:
• Licensing agent for consumer products in Europe, Middle East, China, APAC (excl. Japan & ANZ).
• Production studio for new Peanuts content, including a feature film tied to Apple TV (renewed through 2030).
• Distributor of WildBrain‑produced Peanuts content and manager of the Snoopy YouTube channel.
• Financial Impact:
• EBITDA attributable to the 41 % stake in FY2025: C$27 million (direct) / C$43 million (including consolidation benefits).
• Interest savings exceed twice the free cash flow generated by the Peanuts stake over the prior 12 months.
• Corporate Actions:
• Closure of Canadian broadcast TV channels and removal of variable voting structure; single‑class common shares approved at shareholder meeting on Dec 18, 2025.
• FY2026 guidance paused pending post‑transaction reporting re‑segmentation.
• Advisors: Goldman Sachs (exclusive financial advisor to WildBrain); Barnes & Thornburg LLP and Goodmans LLP (co‑legal advisors). Morgan Stanley & Co., LLC and Mitsubishi UFJ Morgan Stanley Securities (financial advisors to Sony); Hogan Lovells US LLP (legal advisor to Sony).
• Investor Communication: Webcast scheduled for Dec 19, 2025 at 10:00 am ET; presentation and transcript to be archived on WildBrain’s website.

Notable Quotes

“Selling our stake in Peanuts crystallizes the brand's value, eliminating our debt and providing capital flexibility to reinvest in high‑growth, high‑margin opportunities…” – Josh Scherba, President & CEO, WildBrain

“This transaction marks a pivotal moment for WildBrain as we look to the future… By deleveraging, we can now redeploy cash flows from debt service into strategic investments…” – Nick Gawne, CFO, WildBrain