UPDATED with deal closing: Canadian media company Blue Ant Media said Friday that its deal for a reverse takeover of Boat Rocker Media has closed.
The pact, originally announced in March, will now see the Michael MacMillan-owned Blue Ant begin trading on the Toronto Stock Exchange sometime next week under the new ticker symbol “BAMI.” It had previously been trading as Blue Ant Media Inc and now will be known as Blue Ant Media Corp.
With the move, Blue Ant, an international production studio and rights business and channel operator, inherits three Boat Rocker producers in Canada: Insight Productions, Jam Filled Entertainment, and Proper Television. The rest of the Boat Rocker Studios business comprising scripted, unscripted, kids and family production operations have been acquired by its co-founders Ivan Schneeberg and David Fortier and CEO John Young who formed a new company to run it.
As part of the deal, Schneeberg, Fortier and Young resigned as officers and director of the new company, with the new Blue Ant board of directors now including Brad Martin, CEO MacMillan, CFO Robb Chase, Richard Wernham, Phyllis Yaffe, Kent Sobey, Lisa Knutson, Kevin Johnson, Lisa Hsia, Kathryn Houlden and Ellis Jacob.
“This is a transformative moment for Blue Ant Media,” MacMillan said. “As a newly public company, we are entering our next phase of growth as a modern, global media business. With a strong capital position, a proven content model and operations across key international markets, we’re well-positioned to scale in a rapidly evolving landscape. We’re proud to welcome our new shareholders as we execute our strategy to drive long-term value through IP ownership, platform reach and global distribution.”
PREVIOUSLY, March 24: Canada’s Blue Ant Media will go public after completing a deal for listed compatriot Boat Rocker Media.
The agreement will see the Michael MacMillan-owned Blue Ant listing on the Toronto Stock Exchange through a reverse takeover of Boat Rocker, whose management is concurrently buying out its studios business.
Boat Rocker, which makes the likes of The Great Canadian Baking Show, is already listed on the TSX, and the agreement will see it acquiring all outstanding shares in Blue Ant in exchange for subordinate voting shares in the resulting business.
Once the deal closes, the company will be renamed Blue Ant Media Corporation and, subject to regulatory approval, begin trading on the TSX, with Blue Ant shareholders owning about 73.5% of the company and Boat Rocker shareholders taking the rest. MacMillan, who founded Blue Ant, will be the CEO, with Brad Martin the chairman.
The reverse takeover – in which a privately-owned company buys a listed one – allows the acquirer to list on the stock market without holding a traditional IPO. The deal, based on a share price of C$2.25 per Blue Ant share, is a 125% premium on Boat Rocker’s closing price on Friday.
Also part of the agreement, Blue Ant will inherit three Boat Rocker producers in Canada – Insight Productions, Jam Filled Entertainment, and Proper Television — that collectively delivered C$118M in revenue in 2024, based on unaudited results.
Boat Rocker’s other assets, including its Boat Rocker Studios business – comprising scripted, unscripted, kids and family production operations – are among other assets being divided though several transactions. Boat Rocker bosses Ivan Schneeberg, David Fortier and John Young have formed a new biz, IDJCo, to buy Boat Rocker Studios, and the brand management and franchise management operations. These will then be run by a new company operating under the Boat Rocker name.
The MBO team said the new look Boat Rocker Studios would be “well capitalized and operationally focused on content creation and IP management.” It will have offices in Toronto, London, LA, NYC and Hong Kong.
“We are excited about this opportunity to acquire Boat Rocker Studios and use the resulting enhanced strategic focus and flexibility to capitalize on the exciting content creation, investment and partnership opportunities we see in the global marketplace,” said Schneeberg, Fortier, and Young in a statement.
“We will be more agile than ever, allowing us to move faster and lean in closer to projects we believe in. We will be better positioned to invest in amazing content and better able to ensure that the projects we are part of achieve their fullest potential, both in terms of entertainment value and worldwide sales. We will continue to work tirelessly to be the best independent studio partner in the world.”
Blue Ant is headquartered in Toronto, and has offices Los Angeles, New York, Washington, London, Sydney, and Singapore. It generated C$196M in revenues in the fiscal year ending August 31, 2024, a 16% increase year-over-year, and made C$18M in net income.
The new-look Blue Ant will receive C$25.5M as a minimum cash balance and working capital, around $11.6M from The Initial Group’s ownership of Boat Rocker and several other financial guarantees.
Fairfax Financial Holdings, a Blue Ant shareholder, has agreed to support the offering through a C$20M backstop commitment, which would reduce the ownership stakes of Blue Ant and Boat Rocker shareholders if completed. It will also buy Boat Rocker’s minority interest in The Initial Group for around C$17M.
“This is an opportunistic moment for Blue Ant to go public, paving the way for long-term value creation,” said MacMillan. “We are confident that this transaction will unlock significant value for all shareholders. Through the combination of our public listing, a strengthened balance sheet, and significant net cash post-transaction, we believe that we are strategically positioned for profitable global growth, both organically and through M&A.”
