After weak quarterly financials, Canada’s DHX Media is eyeing a sale or merger of the business, which owns kids hits from the Teletubbies to In the Night Garden. The move was a shock to the wider children’s TV community.
The Canadian company’s revenue of C$298.7 million (US$239 million) missed analysts lowest estimates for its fourth quarter results. DHX CEO Dana Landry said that the Teletubbies particularly had underperformed for the business.
To maximise its shareholder value, its board of directors may provide options such as “the sale of part of or all of the company”, an asset sale,“a merger or other business combination with another party, or other strategic transactions”.
DHX was formed in 2006 when Decode Entertainment merged with Halifax Film Company. It has a library of 13,000 half-hours of shows including Degrassi, Caillou and Inspector Gadget.
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