Radio / Television News

DHX Media buys Family, Disney XD and Disney Junior for $170M

family logo.jpg

HALIFAX and TORONTO – Children's entertainment company DHX Media is buying Family, Disney XD, and the English- and French-language Disney Junior channels from Bell Media for approximately $170 million in cash, the companies announced Thursday.

The deal comes as part of Bell Media's requirement to divest some properties to comply with regulatory body conditions attached to its acquisition of Astral Media last July.  The transaction is expected to close in 2014 pending approval by the CRTC and the Competition Bureau.

"The acquisition of these high-quality Canadian channels represents an exciting new addition to DHX, one that complements and enhances all areas of our business and positions us for our next stage of growth" said CEO Michael Donovan, in the announcement.

"Bell Media welcomes DHX Media to the broadcasting industry with their acquisition of the incredible brands that are Family, Disney XD, and Disney Junior," added Bell Media president Kevin Crull.  "I have the utmost confidence that with DHX Media, these brands will continue to flourish and enrich our television industry."

Launched in 1998, Family is the most-viewed children’s channel in the country, with a mix of Canadian productions and acquired series, 60% of which come from Disney.  As a Category A service, it has approximately 5.7 million subscribers and is commercial-free.

Disney Junior (English) and Disney Junior (French) air developmental-based programming for kids aged 2-7.  Launched in 2007, Disney Junior (English) has approximately 4.9 million subscribers, while Disney Junior (French), which launched in 2010, has approximately 500,000 subscribers.  Disney XD is an advertising-supported network targeting boys 6-12 with live-action and animated series and movies of a comedic and adventurous nature.  Launched in 2011, it has approximately 4.5 million subscribers.

DHX said that the purchase price is expected to be financed with an expanded underwritten credit facility and with cash on hand.  Over the trailing 12 months ended August 2013, these channels generated revenue of approximately $81 million and Direct EBITDA (before corporate allocations) of approximately $27 million (unaudited). Over the past three years, revenue has increased at a compounded rate of approximately 7%.

DHX Media owns, markets and distributes 9,500 half hours of children's entertainment content, and exploits owned properties through its consumer products licensing business.  Some of its most recognized brands include Yo Gabba Gabba!, Caillou, Teletubbies, In the Night Garden, Inspector Gadget, Johnny Test and Super WHY!.

www.bellmedia.ca
www.dhxmedia.com