Genius Brands to acquire stake in Germany's Your Family Entertainment

Genius Brands International Inc. agreed to acquire a stake of 28.6% in Your Family Entertainment AG, a Germany-based producer and distributor of programs for children and families.

Under the deal, Genius Brands will buy 3,000,000 shares in YFE for €6 million, the companies said Dec. 2. This will be followed by a mandatory tender offer to acquire additional outstanding YFE shares at €2 per share. The mandatory offer document is subject to approval by Germany's Federal Financial Supervisory Authority.

In addition, Genius Brands intends to invest up to €7 million to support YFE in extending its global digital and linear channel footprint as well as in launching key content.

Genius Brands expects its strategic investment in YFE to help expand its content offering and gain a streaming foothold in Europe and globally.

YFE will be renamed Genius Family Entertainment AG, subject to YFE shareholders' approval. It will operate its children's networks in Europe, Asia, Latin America, Africa and Australia under the Kartoon Channel! Worldwide brand. The company will retain its listing on the Frankfurt Stock Exchange as well as its management board, which includes its CEO Stefan Piëch and COO Bernd Wendeln. Piëch will also join Genius Brands' board of directors.

Paul Robinson, former managing director of Walt Disney Co.'s Disney Television International and senior vice president of Disney Channel Worldwide, will become managing director of Kartoon Channel! Worldwide. Lou Fazio, former director of Walt Disney Television Acquisitions and Programming, will oversee the international channels' programming and support Robinson on the development and rollout of Kartoon Channel! content. Kerry Phelan, Genius Brands' general manager and executive vice president of global franchise management, will supervise the global rollout of consumer products based on Kartoon Channel! content.

Genius Brands develops, produces, promotes and licenses branded children's entertainment properties and consumer products for media and retail distribution.