BMO Capital on CJR Selling Toon Boom Animation 2023-07-14 01:48:44 PM ET (MT Newswires)
01:48 PM EDT, 07/14/2023 (MT Newswires) -- Corus Entertainment announced an agreement to divest Toon Boom Animation to Integrated Media Company, a TPG platform for net proceeds of ~$142 million. The transaction is expected to close in CY2023.
Toon Boom is an animation software company and is a subsidiary of Nelvana. Corus purchased the remaining stake of Toon Boom in 2012 at an ~$8 million valuation. Cash proceeds from the sale will be used for debt reduction.
BMO Capital notes there is limited visibility in the outlook given continued advertising weakness and the strike(s) in Hollywood.
Maintain Market Perform, $2.15 target.