Vancouver’s Rainmaker Entertainment has acquired Fred Siebert’s Frederator Networks in a deal worth an estimated $17 million that will create what Cookie Jar Entertainment co-founder Michael Hirsh said will be “the definitive next generation global” kids and youth entertainment company.
Hirsh, who will lead the new WOW! Unlimited Media Inc. as chairman and CEO, told Business in Vancouver that “we are focused on building and launching platforms rather than just making content. It is a business built on data [using] the work that others do.”
Frederator prides itself on being a unique incubator for animation ideas by producing original cartoons. Out of more than 250 short films it has produced, 16 have resulted in hit shows, including The Fairly Odd Parents and Adventure Time.
Frederator, launched in 2012 and headquartered in New York, manages the Channel Frederator Network, the world’s largest digital animation-only multi-channel network on YouTube.
Frederator’s YouTube channel will be pivotal in WOW!’s decision making, continuing in its incubator role and determining what shows to invest in and produce.
In addition to the New York-based Federation Networks, Rainmaker will acquire Ezrin Hirsh Entertainment Inc. in $5.2 million share purchase deal.
Ezrin Hirsh’s management team includes Bob Ezrin, veteran music producer of such bands as Pink Floyd.
WOW! will be funded in part through approximately $11 million in proceeds from a private placement.
Fred Seibert, founder and CEO of Frederator, will become WOW!’s chief creative officer and continue to focus on building the YouTube platform.
In a press release, Seibert, who will also become WOW!’s, largest shareholder, said, “Frederator’s goal of pursuing world-class talent will be increased exponentially by creating WOW! Unlimited with Michael Hirsh and his team, and Rainmaker Entertainment. The vertical integration will facilitate discovery of new digital filmmakers, levelling them up to produce premium, global programming, while simultaneously growing digital platforms with both advertising and subscription support.”
Earlier this year, Rainmaker broke the mould of B.C.-based animation houses by not only producing but largely financing Ratchet & Clank, a computer-generated animated feature that opened April 29 on 2,890 North American screens.
But Ratchet & Clank’s opening weekend box office results fell well below expectations. Rainmaker announced May 5 that because of the shortfall, the company determined it prudent to apply a $10 million impairment charge to its first-quarter 2016 income.
In the press release, Rainmaker president and chief creative officer Michael Hefferon said Rainmaker was “disappointed with the North American opening release results. … Although support from the Ratchet & Clank fan base has been positive, the turnout for the film was not sufficient to overcome the highly competitive marketplace for [its] opening weekend.”
Commenting on the WOW! merger of companies, Craig Graham, Rainmaker’s chairman and CEO, said: “We have worked hard at Rainmaker to build a great animation studio with the support of our clients, and we welcome the Frederator and Ezrin Hirsh teams to work together with us as we grow to the next level.”
– With files from Marke Andrews
