Kartoon Studios sold the Frederator Networks' Channel Network business for $500,000 in an all-cash transaction. The company retains key intellectual property of Frederator Studios, including Bee and PuppyCat, Bravest Warriors, Castlevania and Catbug, for distribution and product licensing opportunities. This strategic move advances Kartoon Studios' ongoing realignment towards monetizing premium intellectual property, franchise development and global distribution.

The transaction separates two businesses with different operating models and growth priorities. Andy Heyward, Chairman and Chief Executive Officer of Kartoon Studios, stated that the company retains the creative talent and core properties along with key channels that support its franchises. He believes the transaction positions Kartoon Studios to execute its strategic realignment more effectively.

The sale focuses the company's resources on animation production, consumer-products commercialization and global distribution. Kartoon Studios operates Mainframe Studios and Toon Media Networks, alongside Beacon Media Group, a full-service marketing and communications subsidiary. These assets provide production capabilities and distribution across linear television, AVOD, SVOD, FAST channels and streaming platforms in more than 60 territories.

Kartoon Studios' growth portfolio includes Hundred Acre Wood and the Stan Lee Universe. The company aims to convert its intellectual property, infrastructure and global reach into scalable franchise growth and long-term shareholder value.

Kartoon Studios announced that its Board of Directors has unanimously adopted a limited duration stockholder rights plan and declared a dividend distribution of one right for each outstanding share of common stock. The record date for this dividend distribution is July 13, 2026. The Rights Plan has not been adopted in response to any specific takeover bid or other proposal to acquire control of Kartoon Studios.

Additional information regarding the Rights Plan will be contained in a Form 8-K to be filed by Kartoon Studios with the U.S. Securities and Exchange Commission (SEC). The filing will be available on the SEC’s website, and copies will be accessible at no charge in the Investor Relations section of Kartoon Studios’ corporate website.

Key Details of the Rights Plan

About Kartoon Studios

Kartoon Studios is a global leader in children’s and family entertainment, delivering premium content and high-value animated intellectual property to millions of viewers worldwide. The company’s portfolio features globally recognized brands, as well as holding a controlling interest in Stan Lee Universe, and operates Mainframe Studios, one of North America’s largest animation producers, with more than 22,000 minutes of award-winning programming delivered.

Through its Toon Media Networks division including Kartoon Channel!, Ameba, Kartoon Channel Worldwide and Frederator, Kartoon Studios reaches audiences across linear television, AVOD, SVOD, FAST channels, and top streaming platforms. Kartoon Channel! is consistently rated as the #1 kids’ streaming app on the Apple App Store. With a global distribution footprint in over 60 territories, and a robust content pipeline, Kartoon Studios is being positioned for sustained growth and long-term shareholder value.