DHX Media Ltd. - Strategic investment in childrens gaming firm
HALIFAX, Nov. 22 /CNW/ - 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 3 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 kid's 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 Ltd. is a leading international producer and distributor of
film and television programming and interactive content with an emphasis on
children, family and youth markets. DHX Media Ltd. shares are listed on the
Alternative Investment Market of the London Stock Exchange, AIM, and the
Toronto Stock Exchange, TSX. DHX Media's production companies, Decode
Entertainment and Halifax Film, are the producers or co-producers of
14 original television series and theatrical releases currently commissioned
for production and maintain a growing library of over 1,750 half-hours of
mostly children and youth-oriented television productions.
www.DHXMEDIA.com
Disclaimer
This press release contains forward looking statements with respect to
the Company. Although the Company believes that the expectations reflected in
such forward looking statements are reasonable, such statements involve risks
and uncertainties and are based on information currently available to the
Company. Actual results may differ materially from those expressed or implied
by such forward looking statements. Factors that could cause actual results or
events to differ materially from current expectations, among other things,
include risks related to market factors, customer contract interpretation,
application of accounting policies and principles, and production related
risks, and other factors discussed in materials filed with applicable
securities regulatory authorities from time to time including matters
discussed under "Risk Factors" in the Company's short form prospectus dated
November 7, 2007 and in the Company's Amended Annual Information Form
incorporated by reference therein. 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.
For further information: Enquiries: DHX Media - Canada: Dana Landry, Chief
Financial Officer; David A. Regan, EVP, Corporate Development & IR, (902)
423-0260; AIM Nominated Advisors: Canaccord Adams Limited: Neil Johnson; Erin
Needra, +44 (0) 20 7050 6500
(DHX.)
END
© 2007 PR Newswire
