Benjamin Mullin, Lillian Rizzo, Miriam Gottfried
Moonbug Entertainment Ltd., the company behind the hit children’s show “CoCoMelon,” is looking to cash in on its popularity by either selling itself or going public, according to people familiar with the matter.
“CoCoMelon,” with its lilting nursery rhymes on subjects like putting on shoes, has been a breakout hit of the COVID-19 pandemic , with busy parents parking their children in front of the TV to sing along with computer-generated toddlers. It became even more popular when Netflix Inc. (NAS:NFLX) in July struck a deal to launch a spinoff of the series for three seasons.
The company has received interest from multiple suitors and is seeking a valuation of more than $3 billion, some of the people said. One suitor is a company backed by private-equity giant Blackstone Inc. (NYS:BX) run by former Walt Disney Co. (NYS:DIS) executives Kevin Mayer and Tom Staggs, the people said.
There is no guarantee that the conversations with potential acquirers will result in a deal, the people said. Moonbug is also weighing an initial public offering, which executives believe would result in a valuation significantly higher than $3 billion, some of the people said.
An expanded version of this report appears on WSJ.com.
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