In a seismic move set to reshape the landscape of children’s media, Scholastic, the powerhouse of children’s publishing, announced on Tuesday its plans to acquire all economic stakes and minority voting rights in 9 Story Media Group, a renowned creator, producer, and distributor of children’s content, for a staggering $186 million.
Scholastic Invests $186M in 9 Story Media : Expanding the Horizons
This colossal investment marks a strategic maneuver by Scholastic to expand its influence and harness the synergies between its publishing empire and the vast potential of global children’s franchises across various platforms including print, screens, and merchandising.
Scholastic’s President and CEO, Peter Warwick, expressed profound optimism about the partnership, emphasizing the amalgamation of 9 Story’s industry-leading capabilities with Scholastic’s revered brand. “This highly strategic combination… has tremendous potential to build deeper connections with young people through our stories,” Warwick asserted, envisaging a future where the pages of their books come to life on screens and merchandise shelves alike.
Unveiling the Powerhouse
9 Story Media Group boasts an impressive portfolio, featuring divisions such as the award-winning animation studio Brown Bag Films, renowned for clinching 21 Emmy Awards and two Oscar nominations. Additionally, its global distribution division, 9 Story Distribution International, represents a colossal library of more than 5,000 half-hour episodes of animated and live-action programming for kids. The consumer products division, 9 Story Brands, further bolsters its global footprint by crafting compelling brands both on and off the screen.
Scholastic Invests $186M in 9 Story Media : Fortifying a Storied Collaboration
This groundbreaking investment cements a longstanding collaboration between Scholastic’s media development production division, Scholastic Entertainment, and 9 Story, notably highlighted by the animated series reboot of “Clifford the Big Red Dog.” Vince Commisso, President, and CEO of 9 Story, hailed the partnership, recognizing the immense potential it holds to deliver captivating stories and build impactful brands for audiences worldwide.
Strategic Vision Unveiled
The deal promises not only long-term earnings accretion for Scholastic but also a reduction in the capital intensity of production. Moreover, it is expected to drive substantial improvements in both top-line growth and bottom-line results through leveraging 9 Story’s rich content library.
Roadmap to Completion
With approvals from the boards of both companies and shareholders of 9 Story secured, the deal is slated to close during Scholastic’s fiscal year 2025 first quarter, commencing on June 1 of this year.
Scholastic Invests $186M in 9 Story Media : The Dawn of a New Era
As 9 Story, previously owned by private equity firm ZMC, braces for a new chapter under Scholastic’s aegis, the future of children’s media appears to be on the cusp of a transformative evolution.
