EXCLUSIVE: Cake has accomplished the acquisition of belongings from rival Jetpack Distribution in a transfer that doubles the dimensions of its library and reduces the kids TV gross sales area by one.
The settlement, monetary phrases of which weren’t disclosed, comes after Cake introduced a deal to purchase a major variety of Jetpack’s belongings final month. We perceive talks had been ongoing for a number of weeks previous to that.
Jetpack, a well-respected indie distributor, had had been hit by the powerful youngsters TV market. Its founder, Dominic Gardiner, and Cake Group CEO Ed Galton stated it was their shut private relationship had led to in the present day’s deal. Based on Corporations Home, Jetpack liquidated on August 21, however a deal for the belongings akin to Dennis & Gnasher Unleashed had been announced two weeks prior.
Galton instructed Deadline in an unique interview: “We had been impressed with how Dom had constructed the Jetpack model very efficiently and has plenty of recognition out there. We thought they might be an incredible acquisition for the Cake household, and this wasn’t a rush to handle a monetary state of affairs.
“{The marketplace} altering accelerated some conversations. Globally, leisure has been challenged, and we’re reacting to that by making Cake-Jetpack an even bigger group.”
Cake CFO and COO Cat Seddon labored intently with Charles Whelan of unbiased company finance advisor Polestar CF to shut the strategic acquisition, with GBH Regulation advising.
The settlement means producer and distributor Cake doubles the dimensions of its library to three,200 half-hours of youngsters and household content material. Content material carried over consists of Dennis and Gnasher Unleashed, Moley, Speaking Tom and Buddies, Meccamato and The Clangers. It should additionally result in a restructure at Cake, with Gardiner and Cake gross sales exec Toby Jones becoming a member of an expanded distribution division that sells the likes of Offended Birds, Kiri & Loulou and Complete Drama Island. We perceive Jetpack’s different workers is not going to transfer over.
Discussions are underway to evaluate how the Jetpack model can proceed to stay inside Cake. “The Jetpack identify will nonetheless exist,” stated Galton. “It is going to be on our stand at MIPCOM.”
Gardiner, the previous Disney exec and Jetpack founder and CEO, will turn out to be Cake’s Managing Director of Distribution, main the gross sales, advertising and acquisitions crew on the London-based firm. He’ll report back to Galton and Cake CFO and COO Cat Seddon. Jones, previously Gross sales Supervisor at Jetpack, turns into Senior Gross sales Director, working alongside Cake Gross sales Director Juliet Farcat. Each report into Gardiner.
Galton continues to supervise Cake’s 4 principal companies, which comprise Cake Distribution, Cake Manufacturing, Popcorn Digital and Kickstart Manufacturing.
Galton stated: “Combining the efforts and information base that Dom and Toby carry from Jetpack with CAKE’s experience permits us to supply an enhanced gross sales and advertising enterprise, taking the perfect of what Jetpack has to supply and fusing it with the perfect of Cake.
“This creates a a lot better service — and product — for the consumers we promote to and the producers and creators we companion with. Each Jetpack and Cake satisfaction themselves on a private, pleasant, {and professional} strategy, and we intend to maintain constructing on this.”
Gardiner stated Cake had “lengthy been a competitor and a pal,” including: “It’s a pure union that gives nice advantages for the business we work with. I stay up for serving to to take Cake to the subsequent stage.”
Galton acknowledged that the youngsters TV gross sales market had contracted within the U.S., the place a major quantity its enterprise has been carried out over the previous decade. He stated bigger quantity offers had been coming again into vogue over particular person present licensing, however added that each Cake and Jetpack had developed reputations as “considerably boutique” distributors and that they might work to retain the title.
Handing the distribution reins to Gardiner means Galton can deal with constructing Cake Productions, which has been more and more energetic over current years, together with digital content material maker Popcorn Digital and three way partnership Kickstart Productions. “It affords me house to spend time elsewhere,” stated Galton.
