A consortium including former Disney CEO Bob Iger, sports agent Wealthy Paul, eBay and the Chernin Group is buying a 25% stake in toy maker Funko.
The investment, which is price $263 million, or $21 per share, means Chernin will add two directors to Funko’s board. Chernin Group CEO Peter Chernin and Iger will function advisors to the board.
Shares of Funko were initially halted on the news, but have since resumed trading after hours, jumping greater than 20% to around $21 per share.
“We consider Funko is significantly undervalued in the general public markets and at this highly attractive entry price provides a runway of opportunity and growth potential,” Chernin said in an announcement Thursday. “There are lots of areas of identifiable growth across content, commerce, marketplaces, consumer products and technology that ought to drive substantial increases to Funko’s performance.”
Along with his investment business, Chernin produces television and movies through Chernin Entertainment, which launched titles reminiscent of “Latest Girl,” “Hidden Figures,” “The Best Showman” and “Ford v Ferrari.” Previously, he served as president and COO of News Corp and chairman and CEO of the Fox Group, where he helped greenlight “Titanic” and “Avatar,” two of the highest-grossing movies of all time.
Iger is well-known within the entertainment industry for leading the charge at Disney to amass Pixar, Marvel, Lucasfilm and, most recently, twentieth Century Fox. Lots of the characters from franchises inside these brands may be found as a part of Funko’s product line.
Paul, CEO and founding father of Klutch Sports Group and head of sports at United Talent Agency, is predicted to bring his expertise within the sports and music sectors to assist advance Funko’s product expansion in those areas. He represents LeBron James.
As a part of the investment, eBay and Funko agreed to make eBay the popular secondary marketplace for Funko products. They can even team up for exclusive product releases.
It is a breaking news story. Please check back for updates.
