According to Variety, The Chernin Group, Peter Chernin’s investment firm, announced that it is buying 25% of Funko, the pop-culture collectibles company, alongside a group of investors that includes former Disney CEO Bob Iger.
What’s Happening:
- The consortium led by TCG will make a $263 million strategic investment in Funko, acquiring 80% of ACON Investments’ shares in Funko Class A common stock for $21/share.
- Along with Iger, investors in the consortium include ecommerce giant eBay and Rich Paul, CEO and founder of Klutch Sports Group and UTA’s head of sports.
- Shares of Funko popped more than 40% in after-hours trading (before settling down a bit to +27%) on the investment news as well as Funko’s first-quarter 2022 earnings report, which topped Wall Street expectations.
- With the investment, Funko and eBay are entering into a commercial agreement under which eBay will become the preferred secondary marketplace for Funko. The companies also will partner on “exclusive product releases.”
- With the investment in Funko, Chernin Group will designate two directors to the board including Jesse Jacobs, TCG co-founder and partner, with the other to be announced.
- Iger and Peter Chernin will serve as strategic advisers to the Funko board.
- Paul will provide input to the company to “advance Funko’s continued product expansion and growth opportunities in sports and music.”
What They’re Saying:
- Peter Chernin said in a statement: “We believe Funko is significantly undervalued in the public markets and at this highly attractive entry price provides a runway of opportunity and growth potential. There are many areas of identifiable growth across content, commerce, marketplaces, consumer products and technology that should drive substantial increases to Funko’s performance.”
- Iger shared some excitement in this tweet:
- Funko CEO Andrew Perlmutter said: “This investment from TCG validates Funko as a leading lifestyle brand with a pulse on what’s trending in pop culture.”