DHX Media Ltd. (“DHX” or the “Company”) (TSX ticker: DHX), has entered into a definitive agreement to acquire the business of Cookie Jar Entertainment to create Canada’s largest children’s entertainment company. The combined company will own an extensive independent library of children’s entertainment, including more than 8,550 half hour episodes. The transaction implies an enterprise value for Cookie Jar of $111 million, to be paid through a combination of approximately 36 million DHX shares, $5 million in cash, and the assumption of $66 million of debt.

Cookie Jar has a significant content library and features recognizable series including Caillou, Inspector Gadget, and Johnny Test. The company controls Cookie Jar TV, the weekend morning block on CBS. Cookie Jar has offices in Toronto, Los Angeles and in addition, throughout Western Europe, as part of its Copyright Promotions Licensing Group (“CPLG”), a leading licensor and merchandiser of third party brands and characters.

“The acquisition of Cookie Jar is a transformational event for DHX that will significantly enhance our scale and our growth opportunities,” said Michael Donovan, Chief Executive Officer of DHX. “Through this combination, we will strengthen our portfolio of brands, global reach, management depth and our position in the rapidly emerging digital distribution channels to become the market leader.”

“Today is an exciting day for Canada’s children’s entertainment industry,” said Michael Hirsh, Cookie Jar’s CEO. “Cookie Jar joining forces with DHX results in a company that is an independent global market leader in all aspects of children’s entertainment from distribution to production to licensing and merchandising. There is an insatiable appetite for kids content in the new digital streaming universe and we are very well positioned with our extensive library of evergreen, popular and recognizable brands to satisfy the market demand.”

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