This website collects cookies to deliver better user experience. Cookie Policy
Accept
Sign In
The Wall Street Publication
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Reading: ‘CoComelon’ Owner Moonbug Weighs Sale, IPO
Share
The Wall Street PublicationThe Wall Street Publication
Font ResizerAa
Search
  • Home
  • Trending
  • U.S
  • World
  • Politics
  • Business
    • Business
    • Economy
    • Real Estate
    • Markets
    • Personal Finance
  • Tech
  • Lifestyle
    • Lifestyle
    • Style
    • Arts
  • Health
  • Sports
  • Entertainment
Have an existing account? Sign In
Follow US
© 2024 The Wall Street Publication. All Rights Reserved.
The Wall Street Publication > Blog > Markets > ‘CoComelon’ Owner Moonbug Weighs Sale, IPO
Markets

‘CoComelon’ Owner Moonbug Weighs Sale, IPO

Editorial Board Published October 18, 2021
Share
‘CoComelon’ Owner Moonbug Weighs Sale, IPO
SHARE

Moonbug Entertainment Ltd., the company behind the hit children’s show “CoComelon,” is looking to cash in on its popularity by either selling itself or going public, according to people familiar with the matter.

Contents
Newsletter Sign-upDeals Alert

“CoComelon,” with its lilting nursery rhymes on subjects like putting on shoes, has been a breakout hit of the Covid-19 pandemic, with busy parents parking their children in front of the TV to sing along with computer-generated toddlers. It became even more popular when Netflix Inc. NFLX 1.54% in July struck a deal to launch a spinoff of the series for three seasons.

The company has received interest from multiple suitors and is seeking a valuation of more than $3 billion, some of the people said. One suitor is a company backed by private-equity giant Blackstone Inc. BX 0.63% run by former Walt Disney Co. executives Kevin Mayer and Tom Staggs, the people said.

There is no guarantee that the conversations with potential acquirers will result in a deal, the people said. Moonbug is also weighing an initial public offering, which executives believe would result in a valuation significantly higher than $3 billion, some of the people said.

The growing appetite for TV shows and movies sparked by the rise of new streaming services has kicked off a flurry of mergers and acquisitions in Hollywood as independent studios look to cash in on the gold rush. Messrs. Mayer and Staggs are on the hunt for shows and movies they can build entertainment franchises around and recently spent $900 million to acquire Hello Sunshine, the media company founded by Reese Witherspoon. Last month, Netflix said it was buying the rights to stories by children’s author Roald Dahl for an undisclosed sum.


Newsletter Sign-up

Deals Alert

Major news in the world of deals and deal-makers.


Moonbug is on pace to generate roughly $100 million in profit this year, according to people familiar with the matter, through a combination of licensing, advertising and selling merchandise related to its popular shows. Moonbug is expecting profits to double next year to roughly $200 million, as it acquires new shows and licenses them to distributors around the globe. By the end of 2021, Moonbug expects to have at least 100 licensing partners, up from 15 at the beginning of the year.

Moonbug has raised $265 million from investors including Felix Capital, Goldman Sachs Group Inc. and merchant bank Raine Group, which owns a majority stake, one of the people said. The last funding round, a $120 million infusion in 2020, valued the company at nearly $1 billion, the person said.

Moonbug is looking to meet the growing appetite for children’s content as the pipeline for popular shows from traditional TV networks runs dry. Demand for children’s content grew by nearly 58% since the beginning of 2020, according to Parrot Analytics, far outpacing the increase in overall demand for content.

There weren’t any shows from traditional networks of the caliber of Nickelodeon’s “Paw Patrol” or “Dora the Explorer” to meet that demand, said Cyma Zarghami, the former president of ViacomCBS Inc.’s brand Nickelodeon who has founded her own children’s content company, Mimo Studios.

London-based Moonbug was co-founded in 2018 by Rene Rechtman and John Robson, former employees of Disney and ViacomCBS’s Paramount Pictures. Moonbug scouts for popular children’s shows and characters on video platforms like YouTube—including the suspender-clad educational narrator “Blippi” and early-childhood series “Little Baby Bum”—and builds franchises that could include streaming-TV deals, movies and merchandise.

Paying a steep premium for a content company carries risks. There is no guarantee that the pipeline of programming from Moonbug will produce shows as popular as early hits like “CoComelon.” The company could also face competition from buyers who identify emerging shows on YouTube and build franchises around them before they appear on Moonbug’s radar.

Other companies in the children’s space have also explored cashing in.

Pocketwatch Inc., which manages the popular children’s entertainment franchise “Ryan’s World,” recently tapped investment bank Lazard Ltd. to explore options that include selling the business or raising funding to bankroll acquisitions, according to people familiar with the matter. Pocketwatch follows a similar playbook to Moonbug, licensing popular video content with franchise potential, selling merchandise and developing spinoffs.

Entertainment One, the studio behind Peppa Pig, sold in 2019 to games company Hasbro Inc. for $3.8 billion.

Moonbug got a major endorsement in July when Netflix ordered three seasons of “CoComelon Lane,” a spinoff of the popular “CoComelon” franchise on YouTube. “CoComelon” was already a hit on YouTube; it generated more than 1.5 billion views on the video platform over the last month, according to analytics firm Social Blade, which translated into as much as $6.1 million in advertising revenue.

A deal for Moonbug Entertainment would be the second major deal struck by Messrs. Mayer and Staggs for their Blackstone-backed entertainment venture. The as-yet unnamed company is aiming to build an independent entertainment company for Hollywood’s streaming era, acquiring studios that own intellectual property that they are free to license to any network or streaming service, The Wall Street Journal reported.

Write to Benjamin Mullin at [email protected], Lillian Rizzo at [email protected] and Miriam Gottfried at [email protected]

Copyright ©2021 Dow Jones & Company, Inc. All Rights Reserved. 87990cbe856818d5eddac44c7b1cdeb8

TAGGED:MarketsPAIDWall Street Publication
Share This Article
Twitter Email Copy Link Print
Previous Article SEC’s GameStop Report Questions ‘Game-Like’ Trading Apps SEC’s GameStop Report Questions ‘Game-Like’ Trading Apps
Next Article FDA Nears Approval for Mixing Covid-19 Booster Shots FDA Nears Approval for Mixing Covid-19 Booster Shots

Editor's Pick

Brooke Hogan Written Out of Hulk’s Will (At Her Personal Request)

Brooke Hogan Written Out of Hulk’s Will (At Her Personal Request)

Studying Time: 3 minutes Brooke Hogan isn’t in her dad’s will, a brand new report reveals. Regardless of years of…

By Editorial Board 4 Min Read
6 Greatest Underwear To Stop Chafing For Males in 2025 | Fashion
6 Greatest Underwear To Stop Chafing For Males in 2025 | Fashion

We independently consider all really helpful services. Any services or products put…

15 Min Read
9 Finest Males’s Shorts Manufacturers – Versatile Types For 2025 | Fashion
9 Finest Males’s Shorts Manufacturers – Versatile Types For 2025 | Fashion

We independently consider all advisable services. Any services or products put ahead…

13 Min Read

Oponion

Airways are in ‘arms race’ to unveil upgraded luxurious suites

Airways are in ‘arms race’ to unveil upgraded luxurious suites

FOX Enterprise' Gerri Willis investigates why many Millennials and Gen…

June 3, 2025

9 Finest Males’s Hair Powders To Add Styling & Texture 2025 | Fashion

We independently consider all beneficial services.…

March 5, 2025

No minutes restriction for Jimmy Butler in Warriors debut

CHICAGO — Jimmy Butler has performed…

February 9, 2025

Kurtenbach: Buster Posey’s large Rafael Devers commerce is an announcement — the SF Giants are achieved enjoying second fiddle

Final week, I requested a easy…

June 16, 2025

FTX Files for Bankruptcy; CEO Resigns

MarketsCurrenciesCryptocurrencyCrypto platform says it would begin…

November 11, 2022

You Might Also Like

Microsoft joins unique T market cap membership after AI surge, becoming a member of just one different firm
Markets

Microsoft joins unique $4T market cap membership after AI surge, becoming a member of just one different firm

Angelo Zino, a CFRA Analysis senior fairness analyst, discusses the efficiency of Microsoft, Meta and the general tech sector within…

4 Min Read
Moderna plans to slash 10% of workforce as COVID shot gross sales gradual
Markets

Moderna plans to slash 10% of workforce as COVID shot gross sales gradual

Rep. Russell Fry, R-S.C., discusses the Home probe into Pfizer’s launch of COVID vaccine outcomes and extra on ‘Varney &…

3 Min Read
Figma goes public, and the CEO was a fellow at Peter Thiel’s basis
Markets

Figma goes public, and the CEO was a fellow at Peter Thiel’s basis

‘Making Money’ host Charles Payne discusses whether or not the inventory market is a coiled spring able to explode or…

5 Min Read
Zuckerberg needs to offer everybody their very own private superintelligence via Meta’s new imaginative and prescient
Markets

Zuckerberg needs to offer everybody their very own private superintelligence via Meta’s new imaginative and prescient

Meta CEO Mark Zuckerberg on Wednesday introduced the tech large will give attention to growing a private superintelligence for everybody, which…

4 Min Read
The Wall Street Publication

About Us

The Wall Street Publication, a distinguished part of the Enspirers News Group, stands as a beacon of excellence in journalism. Committed to delivering unfiltered global news, we pride ourselves on our trusted coverage of Politics, Business, Technology, and more.

Company

  • About Us
  • Newsroom Policies & Standards
  • Diversity & Inclusion
  • Careers
  • Media & Community Relations
  • WP Creative Group
  • Accessibility Statement

Contact

  • Contact Us
  • Contact Customer Care
  • Advertise
  • Licensing & Syndication
  • Request a Correction
  • Contact the Newsroom
  • Send a News Tip
  • Report a Vulnerability

Term of Use

  • Digital Products Terms of Sale
  • Terms of Service
  • Privacy Policy
  • Cookie Settings
  • Submissions & Discussion Policy
  • RSS Terms of Service
  • Ad Choices

© 2024 The Wall Street Publication. All Rights Reserved.

Welcome Back!

Sign in to your account

Lost your password?