Scholastic Corp. is investing $186 million in the well-established children’s entertainment company, 9 Story Media Group. 9 Story Media Group operates in Toronto, Dublin, New York, and Bali, employing 850 creative and corporate staff.

Scholastic Invests on 9 Story Media Group
Scholastic Invests on 9 Story Media Group

Scholastic Invests on 9 Story Media Group

Its divisions include the animation studio Brown Bag Films, known for creating titles such as Doc McStuffins, Daniel Tiger’s Neighborhood, Octonauts, Wild Kratts, and The Magic School Bus Rides Again.

Additionally, it includes 9 Story Distribution International, which represents children’s series like Clifford the Big Red Dog and A Kind of Spark, and the consumer products unit 9 Story Brands.

Strengthening Ties: Scholastic’s Investment in 9 Story Media Group

The transaction strengthens the 20-year relationship between Scholastic Entertainment and 9 Story Media Group. Recently, they collaborated on the reboot of the animated series Clifford the Big Red Dog for PBS Kids and Amazon Prime Video, as well as the production of Eva the Owlet for Apple TV+.

According to the terms of the deal, Scholastic will acquire 100% of the economic interests and a minority share of voting rights in 9 Story. Both companies’ boards of directors and 9 Story shareholders have approved the investment. Pending approval from the Minister of Canadian Heritage and meeting other closing conditions, the transaction is anticipated to conclude in Scholastic’s fiscal 2025 first quarter, beginning on June 1.

In 9 Story’s latest fiscal year, which concluded on August 31, 2023, the company generated $104 million in revenue. Scholastic views the investment as beneficial for its long-term earnings, as it will reduce production costs and provide new opportunities through 9 Story’s global distribution and licensing capabilities.

Scholastic announced that it will initially finance the transaction using its available cash and revolving credit facility. The company anticipates continuing its regular dividend and stock buyback program.

Fostering Creative Synergy: Visionary Statements from Scholastic and 9 Story CEOs

Scholastic CEO Peter Warwick stated, “This strategic merger, combining 9 Story’s industry-leading capabilities with Scholastic’s trusted brand and proven track record in creating iconic children’s series and franchises, has great potential to forge stronger connections with young audiences through our stories, as our books leap off the pages onto screens and merchandise.”

Vince Commisso, President and CEO of 9 Story, expressed that the merging of assets “creates additional opportunities to produce engaging stories and develop influential brands for global audiences. We’re excited to start merging our complementary talents to strengthen Scholastic’s position as a leading creator, producer, and distributor of children’s and family content.”

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