WildBrain Ltd., a global leader in family entertainment, has entered into a definitive agreement to sell its 41% stake in Peanuts Holdings LLC to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc. for $630 million in cash, subject to customary closing adjustments. The Peanuts brand, managed by Peanuts Worldwide LLC (a subsidiary of Peanuts Holdings LLC), will continue to have the Schulz family, creators of Peanuts, retain their 20% ownership. The transaction is pending regulatory approvals and other closing conditions.

Proceeds from the sale will be used to fully repay WildBrain’s Senior Secured Credit Facility, including all fees, leaving the company with a cash surplus of over $40 million. This financial boost, along with annual interest savings and increased balance sheet capacity, will support growth in several areas:

• Expanding wholly owned franchises such as Strawberry Shortcake and Teletubbies
• Growing the company’s premium digital content network and advertising reach (including YouTube, FAST, and AVOD platforms)
• Investing in emerging technologies to drive innovation and operational efficiencies

Under the terms of the agreement, WildBrain will continue as a multi-year partner to Peanuts, providing key services including:

• Exclusive licensing agent for consumer products in Europe, the Middle East, China, and Asia Pacific (excluding Japan and ANZ) through WildBrain CPLG
• Exclusive production studio for new Peanuts content, including the upcoming feature film, as part of an extended partnership with Apple TV through 2030
• Distributor of WildBrain-produced Peanuts content and ongoing management of the Snoopy YouTube channel

Josh Scherba, President and CEO of WildBrain, commented on the transaction, highlighting the company’s successful strategy in growing both its own and partner entertainment properties. He noted that the sale of the Peanuts stake will eliminate WildBrain’s debt and provide capital flexibility to reinvest in high-growth, high-margin opportunities, particularly for wholly owned IPs such as Strawberry Shortcake, Teletubbies, Degrassi, and Inspector Gadget. Scherba also expressed confidence in Sony’s stewardship of the Peanuts brand and thanked the Schulz family and the Peanuts Worldwide team for their collaboration.

Transaction History & Returns:

• 2017: WildBrain acquired 80% of Peanuts and 100% of Strawberry Shortcake for $448 million
• 2018: WildBrain sold 39% of Peanuts to Sony for $236 million
• Total sale proceeds and distributions from Peanuts ownership: over $1 billion
• EBITDA attributable to WildBrain’s 41% Peanuts stake: $27 million in Fiscal 2025 (or $43 million including certain consolidation benefits)

Interest savings from the transaction are expected to more than double the free cash flow WildBrain earned from its Peanuts stake over the past year. The company plans to invest approximately $50 to $100 million in growth opportunities, focusing on scaling its franchises, expanding its digital content and advertising network, investing in new technologies, and considering share buybacks and strategic acquisitions.

Scherba emphasized WildBrain’s commitment to building a future-focused family entertainment company, citing significant recent growth for Strawberry Shortcake and Teletubbies. The company has also simplified its business by closing its Canadian broadcast television channels, removing ownership restrictions, and consolidating its share structure to a single voting class, as approved by shareholders on December 18, 2025.

WildBrain’s CFO, Nick Gawne, described the transaction as a pivotal moment, enabling the company to redeploy cash flows from debt service into strategic investments that accelerate growth and improve operational efficiency. Fiscal 2026 guidance is currently paused as the company re-segments its financial reporting to reflect the post-transaction business.

An investor webcast to discuss the transaction and WildBrain’s strategic direction will be held on December 19, 2025, at 10:00 am ET. The webcast and related materials will be available on WildBrain’s website.

All financial figures are in Canadian dollars unless otherwise noted.

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