Scholastic is poised to make a major strategic investment in Toronto-headquartered 9 Story Media Group worth US$186 million (C$250 million).

It’s a move that will open up more opportunities for Scholastic to turn its book-based IPs into broad-reaching franchises, supported by 9 Story’s experience and capabilities in animation production (Brown Bag Films), sales (9 Story Distribution International) and licensing (9 Story Brands).

Under the deal, Scholastic will acquire 100% of the economic interest in 9 Story, as well as minority voting rights. The transaction is expected to close this summer — more or less aligning with Scholastic’s Q1 2025, which starts in June — and it will be financed by the publisher’s available cash and revolving credit facility.

The deal is subject to a receipt of a satisfactory opinion by the Minister of Canadian Heritage.

Scholastic has been enjoying strong momentum in page-to-screen adaptations recently after ramping up its Scholastic Entertainment content division to produce projects such as Disney+ anthology Goosebumps (2023) and upcoming series Rocket Park and Signs of Survival.

As it looks to put more content into the pipeline, this acquisition will help Scholastic mitigate risk with new project financing options. 9 Story has studios in Toronto and Dublin, giving it access to Canadian and Irish tax subsidies, and its Bali studio is a valuable asset for animation service work.

Scholastic also has a solid history of successfully partnering with 9 Story on animated series, including Clifford the Big Red Dog (PBS KIDS/Prime Video), Eva the Owlet (pictured, Apple TV+) and Dylan’s Playtime Adventures, which will launch on CBC Kids and U.S. channel Cartoonito this year.

The news follows on the heels of 9 Story acquiring Toronto’s Portfolio Entertainment last month and signing a co-development deal with Crayola Studios in October.

Scholastic’s investment should help drive long-term growth for 9 Story, which generated US$104 million (about C$140.4 million) in revenue last fiscal year. The company also implemented several organizational changes earlier this month, reducing its workforce by less than 3% and transitioning its New York team to remote work in order to sub-lease its Manhattan office space.

This story originally appeared in Kidscreen

Image courtesy of Apple TV+