AG sale clears way for Cookie Jar's DIC deal
By Staff -- Playthings, 7/23/2008 7:57:00 AM
CLEVELAND and TORONTO—Cookie Jar Entertainment is acquiring American Greetings’ Strawberry Shortcake and Care Bears properties for $195 million, the companies said today, in a move that clears the way for Cookie Jar to complete its planned purchase of DIC Entertainment.
As part of the deal, Cookie Jar will also acquire the rights to Sushi Pack, the property created by Studio Espinosa and co-produced by American Greetings and DIC Entertainment. Additionally, Cookie Jar granted American Greetings a 10-year exclusive inbound licensing agreement for social expression products on all three properties.
“When Cookie Jar was founded we wanted to become an international power in children’s entertainment programming,” said Michael Hirsh, Cookie Jar’s CEO. “We have been filling Cookie Jar with great properties such as Caillou, Arthur, Johnny Test and The Doodlebops. The acquisition of DIC and now Strawberry Shortcake and Care Bears makes us the fastest-growing independent player in the industry.”
With the sale, American Greetings Properties, the entertainment and licensing division of American Greetings, will continue its efforts further developing the licensing, marketing and promotional programs for its other franchises, which include Holly Hobbie, the greeting card-based sensation Twisted Whiskers, ’80s gross-out property Mad Balls, TinPo and its new preschool property Maryoku Yummy.
Commenting on the deal, Josef Mandelbaum, CEO of American Greetings’ Intellectual Property Group, said: “Strawberry Shortcake and Care Bears have been synonymous with American Greetings for more than 25 years and are beloved by all. We are very confident that Cookie Jar will be able to take these two properties to new heights. This is a great outcome for our company and shareholders that has allowed us to realize significant value from all of our past efforts in these properties.”
As for Cookie Jar's agreement to purchase DIC Entertainment, delayed by a dispute with American Greetings over DIC's rights to AG's properties, today's deal with AG means that, effective immediately, DIC will operate as a wholly owned subsidiary of Cookie Jar.
As a result, Andy Heyward, DIC's chairman and CEO, has entered into a long-term employment agreement with Cookie Jar.
“I am very pleased to be joining Cookie Jar, a profitable and well-capitalized company led by two of our industry’s most successful executives," said Heyward. "This merger is an exciting development for the future of children’s entertainment worldwide.”
