Moonbug Entertainment Ltd., the company behind the blockbuster children’s show Coco Mellon, is trying to gain popularity by selling or publishing its company, according to people familiar with the matter.
“Coco Melon,” a nursery rhyme like wearing shoes, has become a huge hit in the Covid-19 pandemic, where busy parents park their kids in front of TVs and sing along to computer-generated children. Growth. With the advent of Netflix, it became even more popular Ltd.
In July, we signed a contract to launch a spin-off of the three-season series.
Some said the company is attracting the attention of several suitors and seeking a valuation of more than $3 billion. One of the suitors is a company backed by private-equity giant Blackstone. Ltd.
Formerly operated by Walt Disney Ltd.
Executives Kevin Meyer and Tom Staggs said.
People said there is no guarantee that talks with the potential acquirer will lead to a deal. Some said Moonbug also weighs in on the initial public offering and that some believe executives will be valued at more than $3 billion.
The growing desire for television shows and movies due to the rise of new streaming services has triggered a surge in mergers and acquisitions in Hollywood as independent studios are investing in the gold rush. Meyer and Staggs are looking for shows and movies that could build an entertainment franchise, and recently spent $900 million to acquire Hello Sunshine, a media company founded by Reese Witherspoon. Last month, Netflix said it had purchased the rights to a story by children’s author Roald Dahl for a private sum.
Moonbug is on pace to generate nearly $100 million in profit this year, combining licensing, advertising and sales of products related to the popular show. Moonbug expects to double its profits next year to nearly $200 million as it acquires new shows and licenses them to distributors around the world. By the end of 2021, Moonbug plans to acquire at least 100 licensing partners, up from the 15 at the beginning of the year.
MoonBug has raised $265 million from investors such as Felix Capital and Goldman Sachs Group Ltd.
One said Merchant Bank’s Rain Group, which holds a majority stake. He said the company was valued at around $1 billion in 2020 after the last $120 million injection.
Moonbug is trying to satisfy a growing desire for kids’ content as its pipeline of popular shows from traditional TV networks takes off. According to Parrot Analytics, demand for kids content has increased by about 58% since the beginning of 2020, well ahead of the overall growth in content demand.
Saima Jarghami, former president of ViacomCBS, had no show to meet that demand for Nickelodeon’s traditional network “Paw Patrol” or “Dora the Explorer” caliber. of a corporation
Nickelodeon is the brand that founded Mimo Studios, a content company for kids.
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