Funko Shares Up The Chernin Group-Led Consortium to Acquire $263 Million
May 6, 2022 By MarketDepth
Funko, Inc. (NASDAQ: FNKO) stock jumped about 20% after it was announced that a consortium led by TCG will make a $263 million strategic investment in Funko in an all secondary transaction.
“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,”Peter Chernin, TCG Co-Founder and Partner
TCG and its investor consortium are acquiring from ACON Investments 12,520,559 shares of Funko Class A common stock, or 80% of ACON Investments’ stake in Funko, at $21.00 per share and will own 25% of the Company following completion of the transaction. Additional investors in the consortium include eBay Inc. (Nasdaq: EBAY), Robert A. Iger (Former Disney Chairman and CEO) and Rich Paul (CEO and Founder of Klutch Sports Group and Head of Sports at United Talent Agency). In conjunction with the investment, TCG will designate two directors to the Board including Jesse Jacobs, TCG Co-Founder and Partner. The additional director will be designated at a later date. Mr. Iger and Peter Chernin, TCG Co-Founder and Partner, will provide guidance and strategic insight as advisors to the Funko Board.
Ebay Preferred Secondary Marketplace
As part of this investment, Funko and eBay are entering into a commercial agreement under which eBay will become the preferred secondary marketplace for Funko and the companies will also partner on creating exclusive product releases. Additionally, Mr. Paul will bring his expertise in the sports and music sectors to help advance Funko’s continued product expansion and growth opportunities in sports and music.