That's A Lot Of PEANUTS Charlie Brown
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Apr 28 2010, 5:04 AM
Only $175 million ... this strikes me as the bargain of the century. It was obviously a great stroke of business by Iconix to negotiate on the basis that newspapers were losing circulation, but the Peanuts franchise (not to mention Good Night Moon) will be cash cows for as long as there are children ... I don't see that trend ending anytime soon.
It sure looks like a sweet deal: E.W. Scripps (SSP), owner of the beloved Peanuts brand, is selling United Media Licensing to brand management company Iconix (ICON) and the estate of Charles Schulz in a $175 million cash transaction. Under the terms of the deal, which is expected to close at the end of the second quarter, Iconix will own 80% of the business, while the Schultz estate will hold the remainder. Though United Media owns the licensing rights to an array of brands from Dilbert and Good Night Moon, the majority of its licensing revenue is generated from deals involving the Peanuts characters. Retailers sell more than $2 billion worth of merchandise featuring United Media's licensed brands annually.
Although the news probably doesn't come as a surprise to many -- Scripps made it clear a couple of months ago that it was "exploring strategic options" for its licensing business -- the price might seem a tad low given that Iconix thinks it can generate $75 million in royalties a year from United Media Licensing.
Only $175 million ... this strikes me as the bargain of the century. It was obviously a great stroke of business by Iconix to negotiate on the basis that newspapers were losing circulation, but the Peanuts franchise (not to mention Good Night Moon) will be cash cows for as long as there are children ... I don't see that trend ending anytime soon.
It sure looks like a sweet deal: E.W. Scripps (SSP), owner of the beloved Peanuts brand, is selling United Media Licensing to brand management company Iconix (ICON) and the estate of Charles Schulz in a $175 million cash transaction. Under the terms of the deal, which is expected to close at the end of the second quarter, Iconix will own 80% of the business, while the Schultz estate will hold the remainder. Though United Media owns the licensing rights to an array of brands from Dilbert and Good Night Moon, the majority of its licensing revenue is generated from deals involving the Peanuts characters. Retailers sell more than $2 billion worth of merchandise featuring United Media's licensed brands annually.
Although the news probably doesn't come as a surprise to many -- Scripps made it clear a couple of months ago that it was "exploring strategic options" for its licensing business -- the price might seem a tad low given that Iconix thinks it can generate $75 million in royalties a year from United Media Licensing.
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