- TSX — WILD
Halifax, NS – 22 November 2007 – DHX Media Ltd. (“DHX Media” or the “Company”) (AIM & TSX ticker: “DHX”), a leading independent international producer and distributor of television programming and interactive content, announces that it has completed a strategic investment in privately-held Tribal Nova Inc. by acquiring a 16.77% interest in the company for cash consideration of CAD $2 million.
Montreal, Canada-based Tribal Nova is an established, on-line game developer and operator of gaming and video-on-demand (VOD) broadband channels for children 3 to 12. Tribal Nova commercializes these channels in partnership with major children’s TV broadcasters and Internet Service Providers (ISPs) in North America and Europe, and shares significantly in the subscription revenues generated. Tribal Nova recently launched its first channels in France and Canada in collaboration with leading ISPs such as Orange and AOL/Neuf Cegetel. Another channel is scheduled to launch in the USA in early 2008, in partnership with a US TV children’s broadcaster.
The partnership will provide another platform over which DHX Media can exploit its content library. DHX Media will also benefit from its equity participation by introducing Tribal Nova to its children’s broadcaster clients around the world for whom an internet presence with a viable business model. Tribal Nova will offer broadcasters the ability to create new revenue streams from its subscription service gaming and VOD platforms.
Tribal Nova’s expertise combined with their proprietary software platform enables it to provide an intuitive, kid-friendly, curriculum-based educational and entertaining experience to kids. Children can have access to hundreds of games featuring many renowned TV characters and full video episodes in a secure immersive virtual world. Tribal Nova has produced or licensed rights to over 500 games featuring mostly children’s TV characters. Tribal Nova’s platform involves a highly-developed front-end user interface, a robust content management platform engine and server-side technology which enables Tribal Nova to offer a turn-key solution to potential clients and partners. This enables a reduction in both the development and launch costs of additional distribution channels in terms of development effort and time-to-market, permitting broadcasters to quickly and cheaply deploy an on-line distribution channel for their content giving rise to a potential new source of revenue.
Tribal Nova is led by founders Guillaume Aniorté and Pierre Le Lann who together, have over 20 years of children’s interactive development and production experience. In three years, the co-CEOs have built Tribal Nova into an award-winning Canadian leader in the production of online games for children three to 12 years of age, producing numerous games featuring kids’ favourite television characters, such as Caillou, Toopy and Binoo, Totally Spies or Di Gata Defenders. At the same time they were building a long term strategy to capitalize on the exponential growth of kids’ online gaming and virtual worlds. Tribal Nova does not produce television programs.
Michael Donovan, Chairman and CEO, commented: “We are delighted to announce this strategic partnership with a leading player in on-line casual gaming for three to 12 year olds. Our broadcaster customers are increasingly faced with the need to augment their terrestrial, cable and satellite presence with on-line programming and we look forward to supporting them via this partnership. A key tenet in DHX Media’s strategy is the exploitation of digital content on-line and we look forward to working with this new distribution channel partner.”
Co-CEO’s Guillaume Aniorté and Pierre Le Lann, commented: “We look forward to exploiting many synergies with DHX, combining our interactive expertise with DHX’s extensive library and relationships with TV broadcasters worldwide. With this investment, we plan on taking our broadband channels to even more exciting levels by integrating major community, web 2.0 and user generated content functionalities adapted for kids. We also plan on accelerating our international expansion into European and North American markets. According to DFC intelligence, the worldwide children online game market is expected to grow to $655 million in 2011. Tribal Nova is poised to become one of the key players in this rapidly emerging market.”
About DHX Media
DHX Media produces, distributes and exploits the rights for television and film programming, with a primary focus on productions for children and youth. The Company has twelve series currently in production and a feature film in post-production. There are also twelve children’s series currently in first window broadcast on multiple major cable and broadcast networks in the UK, US and Canada, including, Lunar Jim, Franny’s Feet, The Save-Ums and Naturally Sadie. DHX Media’s prime-time production slate also includes notable achievements in the comedy genre, including the award-winning Canadian prime-time comedy series This Hour Has 22 Minutes, which is produced for the CBC and is now in its 14th season.
For more information, please contact:
DHX Media Ltd.
Dana Landry – Chief Financial Officer
David A. Regan – EVP Corporate Development & Investor Relations
AIM Nominated Advisors: Canaccord Adams Limited
+44 (0) 20-7050-6500
Certain statements herein may constitute forward-looking statements, including those identified by the expressions ‘‘may,’’ ‘‘will,’’ ‘‘should,’’ ‘‘could,’’ ‘‘anticipate,’’ ‘‘believe,’’ ‘‘plan,’’ ‘‘estimate,’’ ‘‘potential,’’ ‘‘expect,’’ ‘‘intend’’ and similar expressions to the extent they relate to the Company or its Management. These statements reflect the Company’s current expectations and are based on information currently available to Management. These forward-looking statements are subject to a number of risks, uncertainties, assumptions and other factors that could cause actual results or events to differ materially from current expectations, including the matters discussed under ‘‘Risk Factors’’ contained in the Company’s prospectus dated May 12, 2006. These forward-looking statements are made as of the date hereof, and the Company assumes no obligation to update or revise them to reflect new events or circumstances.