Global kid’s publishing, education, and media company Scholastic has signed a definitive agreement to invest in 9 Story Media Group, an independent creator, producer, and distributor of kid’s content. Through the deal, Scholastic will acquire a minority of voting rights and 100% of the economic interest in 9 Story for approximately $186 million. This is subject to customary closing adjustments.
9 Story’s business divisions include Brown Bag Films, which has won 21 Emmy awards and two Oscar nominations, and 9 Story Distribution International, which represents live-action programming for kids such as A Kind of Spark. It also includes Story Brands, the consumer products division that focuses on building brands such as Daniel Tiger’s Neighborhood both on- and off-screen. In addition, 9 Story recently partnered with Crayola Studios to handle the production and distribution for new, original projects. It also acquired Portfolio Entertainment’s library, production slate, and development projects.
The investment in 9 Story’s team, production, sales, and licensing capabilities expands Scholastic’s opportunities to leverage its kid’s franchises across print, screens, and merchandising. The investment also solidifies the ongoing collaboration between Scholastic Entertainment — the media development and production division of Scholastic — and 9 Story brands such as the animated series reboot of Clifford the Big Red Dog on Amazon Prime Video and PBS Kids. It also includes the production of Eva the Owlet.
“This highly strategic combination, adding 9 Story’s industry-leading capabilities with Scholastic’s trusted brand and proven ability to create iconic children’s series and franchises, has tremendous potential to build deeper connections with young people through our stories, as the pages of our books come to life on screens and through merchandising,” says Peter Warwick, Scholastic President and CEO. “At its core, Scholastic’s 360-degree content creation strategy is about engaging children with reading, and we have introduced our stories to generations of kids by reaching them where they are.”
Scholastic believes that, due to 9 Story’s existing content library, production studios, and more, the addition of 9 Story will contribute to long-term earnings accretion, drive substantial improvements in top-line growth and bottom-line results, and reduce the capital intensity of production.
“We’ve been fortunate to work with Scholastic for decades, going back to my own start with the family-favorite production, The Magic School Bus. The combination of our global studios, sales, and distribution capabilities with Scholastic’s existing media business, iconic name, and unique capabilities opens even more opportunities to deliver compelling stories and build impactful brands for audiences worldwide,” says Vince Commisso, President and CEO, 9 Story. “We’re eager to begin bringing together our complementary talents to enhance Scholastic’s position as a top developer, producer, and distributor of kids and family content.”
The investment has been approved by the shareholders of 9 Story and both companies’ board of directors. The deal is expected to close in Q1 of Scholastic’s fiscal 2025, which begins on June 1. Scholastic plans to fund the transaction from available cash and its revolving credit facility, while anticipating the maintenance of its regular dividend and authorized stock repurchase program.
For more information, visit investor.scholastic.com.
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