The tv series they make, the schedules their shows shape, and the toys and books they sell may all look like child’s play, but Nelvana is all grown up now.
Would-be parent Corus Entertainment is set to send out its $554 million offer to buy Nelvana to the kidco’s shareholders within a few days, but Nelvana co-ceo Michael Hirsh is showing strength in his conviction that joining Corus is the right way to grow. Although this move will invite certain hardships – such as disqualifying Nelvana from access to funding through the Canadian Television Fund’s eip – Hirsh is confident the up-side is more than worth it.
Of some 23 projects Nelvana is producing this year, Hirsh says two received eip support. ‘Traditionally, one is the most we’d get through. The ctf is an important source of funding, but not to the point of distraction.’ He adds the fund is ‘talking about changing’ the rule that disqualifies prodcos owned by vertically integrated companies from accessing the fund.
Meanwhile, although world markets may look awash in kids channels, Hirsh is optimistic Nelvana and Corus can follow through on their idea of making a Treehouse-type specialty service exportable.
‘I just came back from the (mipcom) market and there were a lot of different groups looking to launch new channels. We’ll obviously evaluate that and examine the opportunities. I don’t think there are too many. Each country has its own unique situation.’
Hirsh says in order to grow to the proverbial next level, it’s critical for Nelvana – a major supplier of programming to Disney, Nickelodeon and other companies housed within conglomerates – ‘to be a very integrated player. If you look at the rest of the world, that’s the way it is. Why should Canada be any different?’
Corus expects to close the offer by mid-November. *