Mr. Josh Scherba reports

WILDBRAIN CLOSES $630 MILLION SALE OF ITS 41% STAKE IN PEANUTS TO SONY AND REPAYS 100% OF ITS SENIOR SECURED CREDIT FACILITY

Wildbrain Ltd. has completed the previously announced sale of its 41-per-cent stake in Peanuts Holdings LLC, the holding entity for the Peanuts IP (intellectual property), to Sony Music Entertainment (Japan) Inc. and Sony Pictures Entertainment Inc. for $630-million in cash, subject to customary purchase price adjustments.

The company also announces that it has repaid the entire outstanding balance on its senior secured credit facility, eliminating its corporate term debt and strengthening its balance sheet, with a cash surplus of over $40-million. These proceeds, together with strong cash flow generation and incremental balance sheet capacity, will be used to support investment in the company's core growth initiatives, including:

• Growth and activation of wholly owned franchises, including Strawberry Shortcake and Teletubbies;
• Expansion of Wildbrain CPLG, the company's global licensing agency;
• Expansion of the company's premium digital content network and advertising footprint across YouTube, FAST (free ad-supported television) and AVOD (advertising-based video-on-demand) platforms;
• Targeted investments in technology and automation to drive operating efficiency and improve operating leverage.

Josh Scherba, president and chief executive officer of Wildbrain, said: "The closing of this transaction marks an important milestone for Wildbrain, strengthening our balance sheet and enhancing our financial flexibility to invest in high-growth opportunities across our business while also enabling opportunistic share repurchases. Through our expertise in content production, audience reach and consumer products licensing, we have materially increased the value of the Peanuts brand. Going forward, I am confident in applying that same proven playbook for Strawberry Shortcake, Teletubbies and other wholly owned franchises. We also look forward to working with Sony and Peanuts Worldwide as valued service partners across content and licensing for the Peanuts brand in the years to come."

The ownership of rights to the Peanuts brand and the management of its business will continue to be handled by Peanuts Worldwide LLC, a wholly owned subsidiary of Peanuts Holdings. The family of Charles M. Schulz, creator of Peanuts, retain their 20-per-cent ownership stake in the brand, and 80 per cent will be owned by Sony.

About Wildbrain Ltd.

At Wildbrain, the company builds and grows beloved family brands through exceptional entertainment experiences. Home to franchises such as Strawberry Shortcake, Teletubbies, Yo Gabba Gabba, Inspector Gadget and Degrassi, Wildbrain is a global leader in franchise management -- bringing stories to life through content production, audience reach and consumer products. Wildbrain's award-winning studio has partnered with top global platforms such as Apple TV, Netflix and the BBC, producing acclaimed series such as The Snoopy Show, Strawberry Shortcake: Berry in the Big City, Teletubbies (2015), Yo Gabba GabbaLand and Finding Her Edge. Through Wildbrain's global digital network across YouTube, FAST and AVOD, the company delivers premium, broadcast-quality content to today's kids and families wherever they are watching -- connecting brands to audiences at scale and offering advertisers one of the largest digital inventories in family media. Wildbrain CPLG, the company's global licensing and consumer products arm, represents Wildbrain's own and partner brands across major territories around the world. Headquartered in Toronto, Wildbrain trades on the Toronto Stock Exchange (symbol: WILD).

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