Mr. Colin Bohm reports

CORUS ENTERTAINMENT REACHES AGREEMENT TO SELL TOON BOOM ANIMATION

Corus Entertainment Inc.'s wholly owned subsidiary, Nelvana Ltd., has entered into a definitive agreement under which Integrated Media Company (IMC), a TPG platform dedicated to the new media ecosystem, will acquire Nelvana's wholly owned subsidiary, Montreal-based animation software company Toon Boom Animation Inc., for approximately $147.5-million in cash.

"Corus is building a powerful multiplatform business aggregating premium video content," said Colin Bohm, executive vice-president of content and corporate strategy, Corus Entertainment. "After an enterprise-wide review of our operating model and asset base, we have decided to exit the animation software business. This move will free up capital, increase Corus's financial flexibility and sharpen our focus as we advance our strategic plan and priorities.

"Toon Boom and its exceptional team have built a leading solution for content creators the world over. We appreciate their contributions to the Corus content portfolio and will work closely with IMC to support a smooth transition."

Toon Boom's award-winning software is the global standard for two-dimensional animation, storyboarding and pipeline management. It provides solutions for everyone from enthusiasts to professionals, giving them the artistic freedom to create in any style and efficiently publish anywhere, as well as providing real-time management for animated projects.

Founded originally in 1994, Corus purchased a 50-per-cent interest in Toon Boom in 2004 and acquired the remaining 50 per cent in 2012. Toon Boom has grown steadily since, with an expanding roster of global clients that includes many of the world's leading animation studios, universities and colleges. This transaction will allow Toon Boom, an Emmy Award-winning company, to further accelerate its impressive growth streak within IMC, a global company with expertise in the digital media landscape.

"Toon Boom empowers creators of all types to bring their stories to life through a versatile platform that offers powerful storyboarding, extensive animation capabilities, and tools for streamlining the production process," said Yuning Zhang, who led the transaction for IMC. "With a best-in-class product, Toon Boom has established itself as an innovative market leader with a best-in-class product suite. Its exceptional tools are trusted by both large and small creative teams, as well as educational institutions shaping the next generation of talent. We are excited to collaborate with the team at Toon Boom to expand their platform into new markets and to introduce groundbreaking products."

The transaction is expected to close later in calendar 2023 and is subject to customary adjustments and closing conditions in the jurisdictions where the parties do business.

The transaction is expected to generate net proceeds to Corus of approximately $142-million, which will be used to repay outstanding bank indebtedness.

LionTree Advisors acted as exclusive financial adviser to Corus, and law firm of McCarthy Tetrault LLP represented Corus on this transaction. Weil, Gotshal & Manges LLP and Davies Ward Phillips & Vineberg LLP served as legal counsel to IMC on this transaction.

About Corus Entertainment Inc.

Corus Entertainment is a leading media and content company that develops and delivers high-quality brands and content across platforms for audiences around the world. Engaging audiences since 1999, the company's portfolio of multimedia offerings encompasses 33 specialty television services, 39 radio stations, 15 conventional television stations, a suite of digital and streaming assets, animation software, technology and media services. Corus is an internationally renowned content creator and distributor through Nelvana, a world-class animation studio expert in all formats, and Corus Studios, a globally recognized producer of hit scripted and unscripted content. The company also owns innovative, full-service social digital agency so.da, lifestyle entertainment company Kin Canada and children's book publishing house Kids Can Press. Corus's roster of premium brands includes Global Television, W Network, HGTV Canada, Food Network Canada, Magnolia Network Canada, History, Showcase, Adult Swim, National Geographic, Disney Channel Canada, YTV, Global News, Q107, Country 105 and CFOX, along with broadly distributed Canadian streaming platforms StackTV, Teletoon+, the Global TV App and Curiouscast.