Scholastic has finalized its agreement to buy Toronto-based kids content producer/distributor 9 Story Media Group for roughly US$182 million—US$4 million less than the original pricetag in March. Terms of the deal stipulate that the Magic School Bus publisher now owns 100% of the economic interest in 9 Story, but only minority voting rights. 

The deal was settled after it received approval from the Minister of Canadian Heritage and met customary closing conditions.

President and CEO Vince Commisso will remain in his leadership role at 9 Story, and the Scholastic Entertainment content production division will continue to be run by Scholastic board chair and president Iole Lucchese.

This acquisition is expected to provide long-term earnings growth for both Scholastic and 9 Story, as well as reducing production costs and improving Scholastic’s bottom line through the optimization of 9 Story’s production, distribution and licensing infrastructure and expertise.

Additional details about both companies’ historical financial results and outlooks will be provided in Scholastic’s Q4 2024 report next month. And then from fiscal 2025 on, their financial results will be consolidated into a new reporting segment. 

“We are thrilled to add 9 Story’s industry-leading children’s content production, distribution and licensing capabilities, extensive content library, and highly talented team to Scholastic’s portfolio,” says Scholastic president and CEO Peter Warwick. “Together, we can leverage our combined scale to grow Scholastic’s children’s franchises, drive book sales and create new opportunities to introduce millions of children to our stories.”  

In their 20-year history of working together as partners, the companies have co-created or co-produced projects such as The Magic School Bus Rides Again for Netflix and Eva the Owlet (pictured) for Apple TV+. And 9 Story Distribution International represents Scholastic’s whole content portfolio, which includes titles such as Clifford the Big Red Dog (65 x 26 minutes) and The Baby-Sitters Club (13 x 28 minutes).

According to Caitlin Friedman (SVP & GM of Scholastic Entertainment) and Natalie Osborne (9 Story Media Group’s chief strategy officer), the first post-merger priorities will a CG-animated Magic School Bus project and a live-action series called Sixteen Souls that adapts Rosie Talbot’s supernatural YA novel about a teen’s plot to uncover a ghost disappearance in England. 

All told, Scholastic and 9 Story currently have 89 projects on their combined development slate.