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2 months ago
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EXCLUSIVE: Cake has completed the acquisition of assets from rival Jetpack Distribution in a move that doubles the size of its library and reduces the kids TV sales field by one.
The agreement, financial terms of which were not disclosed, comes after Cake announced a deal to buy a significant number of Jetpack’s assets last month. We understand talks had been ongoing for several weeks prior to that.
Jetpack, a well-respected indie distributor, had had been hit by the tough kids TV marketplace. Its founder, Dominic Gardiner, and Cake Group CEO Ed Galton said it was their close personal relationship had led to today’s deal. According to Companies House, Jetpack liquidated on August 21, but a deal for the assets such as Dennis & Gnasher Unleashed had been announced two weeks prior.
Galton told Deadline in an exclusive interview: “We were impressed with how Dom had built the Jetpack brand very successfully and has a lot of recognition in the market. We thought they would be a great acquisition for the Cake family, and this wasn’t a rush to manage a financial situation.
“The marketplace changing accelerated some conversations. Globally, entertainment has been challenged, and we are reacting to that by making Cake-Jetpack a bigger organization.”
Cake CFO and COO Cat Seddon worked closely with Charles Whelan of independent corporate finance advisor Polestar CF to close the strategic acquisition, with GBH Law advising.
The agreement means producer and distributor Cake doubles the size of its library to 3,200 half-hours of kids and family content. Content carried over includes Dennis and Gnasher Unleashed, Moley, Talking Tom and Friends, Meccamato and The Clangers. It will also lead to a restructure at Cake, with Gardiner and Cake sales exec Toby Jones joining an expanded distribution division that sells the likes of Angry Birds, Kiri & Loulou and Total Drama Island. We understand Jetpack’s other staff will not move over.
Discussions are underway to assess how the Jetpack brand can continue to live within Cake. “The Jetpack name will still exist,” said Galton. “It will be on our stand at MIPCOM.”
Gardiner, the former Disney exec and Jetpack founder and CEO, will become Cake’s Managing Director of Distribution, leading the sales, marketing and acquisitions team at the London-based company. He will report to Galton and Cake CFO and COO Cat Seddon. Jones, formerly Sales Manager at Jetpack, becomes Senior Sales Director, working alongside Cake Sales Director Juliet Farcat. Both report into Gardiner.
Galton continues to oversee Cake’s four main businesses, which comprise Cake Distribution, Cake Production, Popcorn Digital and Kickstart Production.
Galton said: “Combining the efforts and knowledge base that Dom and Toby bring from Jetpack with CAKE’s expertise enables us to offer an enhanced sales and marketing business, taking the best of what Jetpack has to offer and fusing it with the best of Cake.
“This creates a much better service — and product — for the buyers we sell to and the producers and creators we partner with. Both Jetpack and Cake pride themselves on a personal, friendly, and professional approach, and we intend to keep building on this.”
Gardiner said Cake had “long been a competitor and a friend,” adding: “It’s a natural union that offers great benefits for the industry we work with. I look forward to helping to take Cake to the next level.”
Galton acknowledged that the kids TV sales market had contracted in the U.S., where a significant amount its business has been conducted over the past decade. He said larger volume deals were coming back into vogue over individual show licensing, but added that both Cake and Jetpack had developed reputations as “somewhat boutique” distributors and that they would work to retain the title.
Handing the distribution reins to Gardiner means Galton can focus on building Cake Productions, which has been increasingly active over recent years, along with digital content maker Popcorn Digital and joint venture Kickstart Productions. “It affords me space to spend time in other places,” said Galton.
