Scholastic, a well-known company that creates books, educational materials, and media for children, has recently made a significant investment in 9 Story Media Group.
This investment, valued at approximately USD $186 million, gives Scholastic full control over the economic interests and a portion of the voting rights in 9 Story, a company known for producing high-quality children’s content. This move is aimed at expanding Scholastic’s reach in the children’s entertainment industry.
Details of the Investment:
- Scholastic’s investment in 9 Story allows them to acquire 100% of the economic interests and a minority share of voting rights in 9 Story for around USD $186 million.
- The investment has been approved by the boards of directors of both companies as well as the shareholders of 9 Story.
- The transaction is expected to close in Scholastic’s fiscal 2025 first quarter, beginning on June 1, 2024, pending regulatory approval.
- Scholastic plans to fund the investment using available cash and its revolving credit facility, maintaining its dividend and stock repurchase program.
Benefits of the Investment:
- The partnership between Scholastic and 9 Story enables Scholastic to leverage its brand and successful franchises alongside 9 Story’s expertise in content creation, production, and distribution.
- This collaboration strengthens Scholastic’s position in the children’s media market, allowing its stories to reach young audiences across various platforms.
- Scholastic anticipates long-term earnings growth and improved financial performance by integrating 9 Story’s content library, production capabilities, and global distribution channels.
About Scholastic and 9 Story:
- Scholastic Entertainment, Scholastic’s media development and production division, has previously collaborated with 9 Story on projects like the animated series reboot of “Clifford the Big Red Dog” and “Eva the Owlet”.
- 9 Story Media Group comprises several divisions including Brown Bag Films, an award-winning animation studio, 9 Story Distribution International, and 9 Story Brands, which focus on production, distribution, and consumer products respectively.
- The combined talents of Scholastic and 9 Story aim to create compelling stories and build impactful brands for children worldwide.
Conclusion:
Scholastic’s investment in 9 Story Media Group marks a significant milestone in its efforts to expand its presence in children’s entertainment. By combining their resources and expertise, Scholastic and 9 Story aim to deliver high-quality content that engages and educates young audiences globally. This strategic partnership reflects Scholastic’s commitment to providing enriching experiences for children through innovative storytelling across multiple platforms.
About Scholastic
For over 100 years, Scholastic Corporation (listed as NASDAQ: SCHL) has been inspiring kids grow smarter and more confident, especially by helping them learn to read. They’re well-known for working closely with teachers and families, and they’re the biggest company in the world that makes and delivers books for kids. They also provide materials and services to help kids learn to read, both in school and at home.
Scholastic creates and sells popular books and e-books, learning programs for kids from preschool to high school, and other things that help kids learn and read. They operate internationally, selling books in more than 135 countries. They make sure that kids everywhere can get good books at fair prices, through school book clubs, book fairs, libraries, stores, and online.
About Scholastic Entertainment
Scholastic Entertainment makes really good stuff that you can watch on different platforms like TV and streaming services. They’ve made shows like “Clifford the Big Red Dog” for Amazon Prime and PBS Kids, and “Stillwater,” which won awards, for Apple TV+. They’re also working on new projects like “Eva the Owlet” for Apple TV+ and a second season of “Goosebumps.” Plus, they’re making a movie based on “The Magic School Bus.” Scholastic Entertainment is part of Scholastic Corporation.
About 9 Story Media Group
9 Story Media Group is a big company that makes and shares cool stuff for kids and families. They’ve got an awesome animation studio called Brown Bag Films that makes shows like “Doc McStuffins,” “Daniel Tiger’s Neighborhood,” “Octonauts,” “Wild Kratts,” and “The Magic School Bus Rides Again.” They also have a team in Dublin called 9 Story Distribution International that helps get these shows on TV and streaming platforms all over the world. Plus, they have a part of the company called 9 Story Brands that makes toys and other fun stuff based on their shows.
Another group within the company, the Creative Affairs Group, comes up with new ideas for shows based on what kids like. They have offices in Toronto, Dublin, New York, and Bali, and they have around 850 people working for them who are super creative and smart.
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