Scholastic is poised to make a major strategic investment in 9 Story Media Group with its agreement to buy the Canadian company for US$186 million.

It’s a move that will open up more opportunities for Scholastic to turn its book-based IPs into broad-reaching franchises, supported by 9 Story’s experience and capabilities in animation production (Brown Bag Films), sales (9 Story Distribution International) and licensing (9 Story Brands).

Under the deal, Scholastic will acquire 100% of the economic interest in 9 Story, but only minority voting rights. The transaction is expected to close this summer—more or less aligning with Scholastic’s first fiscal quarter of 2025, which starts in June—and it will be financed by the publisher’s available cash and revolving credit facility. 

Scholastic has been enjoying strong momentum in page-to-screen adaptations recently after ramping up its Scholastic Entertainment content division to produce projects like Disney+ anthology Goosebumps (2023) and upcoming series Rocket Park and Signs of Survival.

As it looks to put more content into the pipeline, this acquisition will help Scholastic mitigate risk with new project financing options—9 Story has studios in Toronto and Dublin, giving it access to Canadian and Irish tax subsidies. And its Bali studio is a valuable asset for animation service work. 

Scholastic also has a solid history of successfully partnering with 9 Story on animated series including Clifford the Big Red Dog (PBS KIDS/Prime Video), Eva the Owlet (pictured, Apple TV+) and Dylan’s Playtime Adventures, which will launch on CBC Kids (Canada) and Cartoonito (US) this year.

This news follows on the heels of 9 Story acquiring Canada’s Portfolio Entertainment last month and signing a co-development deal with Crayola Studios in October. 

Scholastic’s investment should help drive long-term growth for 9 Story, which generated US$104 million in revenue last fiscal year. The Canadian company also implemented several organizational changes earlier this month, slightly reducing its workforce (by less than 3%) and transitioning its New York team to remote work in order to sub-lease its Manhattan office space.