WildBrain is renegotiating the terms of an agreement to sell its TV channels (including Family Channel and Family Jr.) to Halifax-based animation studio IoM Media Ventures, after Bell told WildBrain it would stop carrying them. 

Signed in December 2024, the original deal called for IoM (L’il Stompers, Inspector Gadget) to buy a 66.6% majority share of WildBrain’s channels business for roughly US$28 million (CAD$40 million) over the next four years. Family Channel (families), Family Jr. (preschool), WildBrain TV (six to 15s) and Télémagino (French-language preschool and kids) were all included in the package. 

WildBrain was to retain a 33.3% stake—and no longer be subject to restrictions under the Broadcasting Act that give Canadian shareholders more voting power than non-Canadians. According to WilBrain, this would give the company “greater strategic flexibility and opportunities,” which could possibly include exploring an acquisition by an international buyer. 

But a carriage dispute with Bell has thrown a wrench into the deal. The gist of the dispute is that WildBrain filed a complaint in 2023 claiming that Bell Canada put WildBrain at an “undue disadvantage and [gave] undue preference” to kids TV channels run by Corus. The CRTC dismissed the complaint in March, ruling that this was not the case. WildBrain says that Bell has since given notice that it plans to stop distributing WildBrain’s channels. 

Losing the Bell distribution is a blow to the valuation of WildBrain’s channels and the sales deal, says president and CEO Josh Scherba (pictured). “Bell’s decision to remove the channels from its distribution service will require us to revise certain aspects of the transaction with IoM, but we are optimistic we can arrive at a deal that works for both of us.” 

In the last five years, WildBrain’s channels have greenlit more than 15 seasons of original Canadian productions, including Summer Memories (A&N Productions, Aircraft Pictures and Yeti Farm Creative) and The Fabulous Show with Fay and Fluffy (Lopii Productions). 

WildBrain is looking to sell them off as part of a broader corporate strategy to simplify its business and focus on key franchises such as Peanuts, Strawberry Shortcake and Teletubbies. 

Image courtesy of WildBrain.