Toronto’s WildBrain has entered into an agreement to sell a 66.6% majority stake in its TV broadcasting business to IoM Media Ventures, a Halifax-based studio that specializes in kids animation production. 

WildBrain will hang onto a 33.3% ownership share over the part of its infrastructure that operates Family Channel, Family Jr., WildBrainTV and Télémagino. 

The deal is still waiting on approval from the Canadian Radio-Television and Telecommunications Commission (CRTC), but is expected to close sometime in the next three to six months.

WildBrain anticipates generating more than US$27.9 million (CAD$40 million) in revenue over the next four years from this transaction and its remaining stake in the channels business, through a mix of up-front and deferred purchase considerations and content licensing fees.

The two companies already have a business relationship—IoM has done animation service work on a number of WildBrain shows, including Caillou and Space Ranger Roger out of the Halifax studio. Private investment firm and IoM investor MEP Capital partnered on this deal to provide financial backing for the transaction.

WildBrain will continue operating its channels while the deal is finalized, and there are currently no plans to implement any changes to management, workforce or location. Any future adjustments will be “thoughtfully considered based on the evolving needs of the business,” according to a release. Under this new structure that only involves Canadian stakeholders, WildBrain will eventually no longer be restricted under the Broadcasting Act by clauses related to non-Canadian ownership. 

“As we continue to strategically focus on driving high-growth areas for key global franchises and partnerships, this transaction is a critical step forward in simplifying our business,” said WildBrain president and chief Josh Scherba (pictured). “Financially, we believe it strikes a balance between economic participation for WildBrain, while benefiting our leverage profile over the long term.”

IoM president and CEO Dana Landry added: “[We] look forward to integrating these channels and resources into our ecosystem after close of the transaction to accelerate growth as we look to invest boldly in content and expand our footprint in the kids & family entertainment space,”