WildBrain Ltd. has signed a definitive agreement to sell its 41 percent stake in Peanuts Holdings LLC, the holding entity for the Peanuts intellectual property, to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc. for $630 million in cash, with all dollar values expressed in Canadian currency unless otherwise specified. The transaction is described as a strategic move that crystallizes the substantial value of the Peanuts brand, fully de-levering WildBrain’s balance sheet, eliminating all debt and saving approximately $50 million in annual interest payments while leaving over $40 million in surplus cash. This financial flexibility will allow WildBrain to reinvest in high-growth, cash-accretive opportunities across its wholly owned franchises, premium digital network and innovative technologies. WildBrain will remain a key partner to Sony through a multi-year Peanuts services agreement, including roles in content production, consumer products licensing and digital distribution, ensuring continued involvement in the global growth of the Peanuts franchise.

Goldman Sachs is acting as exclusive financial advisor and Barnes & Thornburg LLP and Goodmans LLP are acting as co-legal advisors to WildBrain Ltd.

Morgan Stanley & Co. LLC, together with Mitsubishi UFJ Morgan Stanley Securities Co., Ltd. are acting as financial advisors and Hogan Lovells US LLP is acting as legal advisor to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc.