DHX Media (DHXM) announced that the Special Committee of its board has concluded its Strategic Review. As part of the Strategic Review, the company has signed a multi-million-dollar agency agreement for Peanuts in China and Asia with CAA Global Brand Management Group LLP, a division of Global Brands Group, which follows the previously announced sale of a minority stake in Peanuts to Sony (SNE) for $178M. The company also announces that it has refocused its content strategy to prioritize investment in WildBrain, and the development of premium content for major streaming services and broadcasters. Additionally, as an outcome of the Strategic Review, DHX Media's board has suspended the company's quarterly dividend, effective immediately, freeing up approximately $10M in annual funds, to invest in our rapidly growing WildBrain business and to continue paying down debt. Under the Strategic Review, the Special Committee, together with the company's executive team and bankers, assessed a wide range of options to enhance shareholder value. Interest was received from multiple parties for a variety of assets, business combinations and strategic partnerships, and while we chose to move forward only with certain transactions that offered the best value for shareholders, we found that the process affirmed the strength of our asset portfolio. During the Strategic Review, the company also undertook a comprehensive internal review of its management team, operational processes and structures, and its content strategy. The combined Strategic and internal review process, once fully implemented, is expected to generate $11M in annualized operating savings.
