On Wednesday, media corporation Entertainment One Ltd. or eOne announced it acquiring a 70% stake in Peppa Pig producer Astley Baker Davies valued to be $212 million. eOne has acquired the stakes in the firm for $212 million and funded the deal through a rights issue that raised $290 million.
Astley Baker Davies was founded by Mark Baker, Phil Davies, Neville Astley, who designed the Peppa Pig character in the late1990s. The trio who had been sole shareholders all this while would now have to split the royalties from sales and merchandise as 85-15 in favor of eOne. Since 2007, the two companies have worked together and co-owned the animated cash cow – or is that pig-beloved of children around the world and the adventures of Peppa and her family. More than 200 episodes of Peppa Pig have been aired in more than 180 territories, that includes Nickolodean JR in the U.S.
“eOne has entered into an agreement with Peppa Pig co-owners Astley Baker Davies to purchase a controlling stake in the global brand,” said eOne in a statement. “As part of the deal, creators, directors and producers Mark Baker, Neville Astley and Phil Davies are producing an additional 52 magical episodes of Peppa Pig.” eOne’s stock fell 8.75% on the Wedneday morning on news of the deal.
With the buying of the stakes, eOne strongly believes in doubling the retail sales of Peppa Pig, which are thought to generate revenue of more than $800 million per year. eOne’s CEO Darren Throop said the buying of the stakes was part of its strategy to double the size of the business in the coming years.
“Peppa Pig has become a worldwide success and reflects the strength of our ten year partnership working with ABD. Already the number one pre-school property in the UK, Australia, Spain, Mexico and Brazil, and a leader in other territories around the world, the growth opportunities for Peppa Pig are significant,” said Throop. “As we continue to expand in the U.S., Asia and throughout our existing markets, we are excited to enter into new markets and take Peppa to new heights,” he added.