Former Disney executives Tom Staggs and Kevin Meyer are hoping to buy Moonbug Entertainment, the London-based children’s TV producer in a deal backed by Blackstone which has also recently invested in women’s TV producer Hello Sunshine.
The deal may be worth around $3bn, comprising a rumoured $2.75bn as an initial consideration with a potential $300m earnout. Moonbug’s key property is the show CoCoMelon, with over 100m YouTube subscribers, which has attracted Netflix to commission three series.
Moonbug has attracted $265m in funding to date and its most recent valuation was $575m. Earnings for the current year are anticipated to be $100m, potentially doubling in 2022. The deal is thought imminent but not yet confirmed and an alternative could be for Moonbug to seek an IPO.
