Toon Boom Animation Sold to Private Equity Firm for $111M
Summary
New York-based private equity firm Integrated Media Company has unveiled a deal to buy Toon Boom Animation from Canadian cartoon company Nelvana for CAN$147.5 million (US$111 million), to allow parent Corus Entertainment to pay down debt. “This move will free up capital, increase Corus’ financial flexibility, and sharpen our focus as we advance our strategic plan and priorities,” Colin Bohm, executive vp of content and corporate strategy at Corus Entertainment, said in a statement. The latest international launch for the Paramount free, ad-supported online video channel comes as Canadian TV viewers grapple with rising subscription costs and more subscription video offerings than ever north of the border to compete against Netflix and other streaming giants. Corus, like other Canadian TV networks, has seen a dramatic drop in advertising revenues during the pandemic and as a recessionary threat looms, while programming costs continue to climb. IMC’s proposed deal to acquire Toon Boom is expected to close by the end of 2023, pending regulatory approvals.
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