WildBrain, the Canadian children’s media company with the rights to titles such as “Yo Gabba Gabba!” and the “Teletubbies,” has purchased the child-focused generative AI startup Personality AI in a cash-and-stock deal worth up to $69 million in a bid to marry the company’s intellectual property with the startup’s conversational products.
Personality AI touts its conversational character AIs as child-safe, working with a mixture of AI engineers, child development experts and entertainment producers to develop AI models based on licensed child characters that implement safeguards as children engage with them while not retaining child data. Amazon selected Personality AI last year to develop a platform on its kids-focused subscription service Amazon Kids+, leading to a “Peppa Pig”-based generative product for children to engage with the fictional British icon.
The company is also part of the Federal Trade Commission-backed COPPA Safe Harbor Program, one of the leading independent oversight programs related to federal child privacy protections. WildBrain hopes the acquisition will boost the revenue opportunities for its array of IP, including “Degrassi” and “Strawberry Shortcake.”
Popular on Variety
“Personality AI enables more continuous interaction between fans and brands, strengthening our ability to deliver end-to-end franchise solutions to partners,” WildBrain CEO and president Josh Sceherba said in a statement. “This highly complementary acquisition positions us and Personality AI as a more integrated partner to IP owners globally through our in-house licensing agency, WildBrain CPLG, while helping support the continued growth of both our owned and partner brands.”
Wildbrain paid roughly $11 million in cash along with 1 million shares. Shareholders will also receive $2 million worth of WildBrain shares (up to 1 million shares) in additional consideration on the first anniversary of closing, with the remaining balance paid in cash. The deal also includes up to $56 million in performance-based cash consideration based on Personality AI’s revenue performance between 2027 and 2029. Personality CEO John Goscha will join WildBrain as the executive vice president for Personality AI and will report to Scherba.
“I’m thrilled to be joining forces with WildBrain, a clear leader in family entertainment,” Goscha said in a statement. “At Personality AI, we share WildBrain’s commitment to children’s wellbeing, which is why we employ rigorous safety standards to ensure appropriate, authentic and trustworthy content and experiences for kids, parents and IP owners alike.”