$GNUS Issues Shareholder Letter
BEVERLY HILLS, CA–(January 30, 2017) – Genius Brands International (NASDAQ: GNUS) recently released a letter to shareholders from Chairman & CEO Andy Heyward. The complete letter follows:
Dear Shareholders,
Some people have asked me in the last week, what’s going on with our stock price. In the past two months, it’s been as high as $8.00 dollars and as low as $3.85. Of course, I don’t like to see this kind of fluctuation, and neither the highs nor the lows accurately reflect the business.
As your CEO, I can’t control stock prices going up and down. I can, however, focus on growing our business and building assets, which ultimately is creating the value in the company. Eventually, we know stock prices align with value.
That is EXACTLY what we have been doing at Genius Brands, and the result is that over the last three years, we have created a powerful catalogue of kid’s content (encompassing seven different brands and an equally powerful distribution outlet, Kid Genius Cartoon Channel). Both are highly valuable and desirable items, which quite often get sold to bigger companies in the food chain (major studios, networks, phone companies, cable companies, etc.).
Here are some facts to remember:
We have more positive events occurring in Genius Brands today than at any time before. I would add, even more than when I sold my previous company to Disney and to Cookie Jar for many multiples of what we trade at.
- More brands, both in and coming to the marketplace
- More licensees
- More committed retailers
- More catalogue in use
- A rapidly growing kids channel currently in 50 million U.S. television households, and we are in negotiations, which will put it at over 75+ million U.S. television households by the end of this quarter. (Note, there are a total of 105 million U.S. television households. At 75 million, Kid Genius Cartoon Channel will be able to reach three out of four kids in the U.S.)
The creation of children’s characters, and licensing consumer products around them, is the same business,
1. that drove the sale of DreamWorks for $3.4 billion dollars to Universal.
2. that drove the sale of Marvel for $4+ billion dollars to Disney.
The creation of our Kid Genius Cartoon Channel distribution system, which can deliver kids content to greater than 60% of U.S. television households,
1. is the same business that drove the sale of FOX Kids to Disney for $5.4 billion.
2. is the same business that drove the sale of the HUB to Hasbro and eventually Discovery.
We have powerful and committed partners that are engaged in our brands and businesses, including:
- Netflix
- General Mills
- YouTube
- Comcast
- Sony Music/Sony Pictures Home Entertainment
- Target
- Toys”R”Us
- Amazon
- Penguin Books
THESE ARE THE CRÈME DE LA CRÈME OF THE CHILDREN’S BUSINESS FOOD CHAIN
These partnerships and others including broadcasters, publishers , toy companies, electronics, and key licensees, provide an ‘architecture and ecosystem’ for bringing our properties to the consumer, and to make money…just as I have done with our key management many times before. These companies are smart, wired, and selective. They don’t enter relationships with unproven parties nor with properties that they don’t believe can become extremely successful, and they usually do.
The relationship with Sony Pictures Home Entertainment is PARTICULARLY meaningful. Not only are they a strategic business partner on multiple businesses, but they recently took a 7% investment in the company. They have a firm commitment to grow their own kid’s business through their relationship with Genius Brands.
When I had the good fortune to ring the NASDAQ closing bell last week, Sony had a Senior Vice President there WITH ME on the platform. In 2017 and beyond, they will be releasing more and more of our properties into the marketplace as our global digital content distributor.
I have said it takes three years to create, produce, distribute, and bring our content ultimately to the retail shelf. We now have the first of our properties, SpacePOP, on shelf in a big way. We have the licensees; we have the retail support; and we have the content, which has millions and millions of views and continues to grow every day.
What is required is PATIENCE.
In October, our second property will debut, Llama Llama, for Netflix and stars Jennifer Garner. We are well along in production, and our delivery to Netflix in October will not only trigger the beginning of several million dollars of payments from them, but also an array of advances and guarantees from merchandise, which will then be on retail shelves everywhere.
Warren Buffett, has said over and over again that patience is the most important discipline required of an investor. He even put it inside the curriculum of our Secret Millionaires Club. Few have it, but those who do, win.
We have powerful value drivers occurring in Genius Brands, and I encourage you to watch now as they come to market.
Andy Heyward
Chairman & CEO
Genius Brands International
Investor Relations
Porter, LeVay and Rose
Michael Porter
T: 212-564-4700
Email contact
TraderPower Featured Companies
Top Small Cap Market News
- $SOBR InvestorNewsBreaks – SOBR Safe Inc. (NASDAQ: SOBR) Closes on $8.2M Private Placement
- $CLNN InvestorNewsBreaks – Clene Inc. (NASDAQ: CLNN) Announces Participation at Two Upcoming Investor Conferences
- $ATBHF Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) Releases Updated Report on Storm Copper Project Drilling Program
- $LGVN InvestorNewsBreaks – Longeveron Inc. (NASDAQ: LGVN) to Present at This Month’s Congenital Heart Surgeons’ Society Annual Meeting
- $LEXX InvestorNewsBreaks – Lexaria Bioscience Corp. (NASDAQ: LEXX) Begins Subject Dosing in Human Pilot Study #3 Evaluating Oral DehydraTECH-Processed Tirzepatide
- $FSTTF InvestorNewsBreaks – First Tellurium Corp. (CSE: FTEL) (OTC: FSTTF) Shares Additional Information on the PyroDelta Thermoelectric Generator, Relationship with Subsidiary
- $TMET.V Gold Stutters as Strong US Jobs Data Dampens Expectations of Large Rate Cuts
- $RFLXF JPMorgan Executive Says US Backlash Against ESG Is Exaggerated
- $SFWJ InvestorNewsBreaks – Software Effective Solutions Corp. (d/b/a MedCana) (SFWJ) Releases Report on Series of Acquisitions, Multiple Cannabis Licenses
- $EAWD IEA Hosts G20 Ministers, Influential Personalities to Discuss Clean and Affordable Energy Transition
Recent Posts
- $EAWD IEA Hosts G20 Ministers, Influential Personalities to Discuss Clean and Affordable Energy Transition
- $SFWJ InvestorNewsBreaks – Software Effective Solutions Corp. (d/b/a MedCana) (SFWJ) Releases Report on Series of Acquisitions, Multiple Cannabis Licenses
- $RFLXF JPMorgan Executive Says US Backlash Against ESG Is Exaggerated
- $TMET.V Gold Stutters as Strong US Jobs Data Dampens Expectations of Large Rate Cuts
- $FSTTF InvestorNewsBreaks – First Tellurium Corp. (CSE: FTEL) (OTC: FSTTF) Shares Additional Information on the PyroDelta Thermoelectric Generator, Relationship with Subsidiary
- $LEXX InvestorNewsBreaks – Lexaria Bioscience Corp. (NASDAQ: LEXX) Begins Subject Dosing in Human Pilot Study #3 Evaluating Oral DehydraTECH-Processed Tirzepatide
- $LGVN InvestorNewsBreaks – Longeveron Inc. (NASDAQ: LGVN) to Present at This Month’s Congenital Heart Surgeons’ Society Annual Meeting
- $ATBHF Aston Bay Holdings Ltd. (TSX.V: BAY) (OTCQB: ATBHF) Releases Updated Report on Storm Copper Project Drilling Program
Recent Comments
Archives
- October 2024
- January 2023
- June 2022
- December 2021
- September 2021
- August 2021
- July 2021
- June 2021
- May 2021
- April 2021
- March 2021
- February 2021
- January 2021
- December 2020
- November 2020
- October 2020
- September 2020
- August 2020
- July 2020
- June 2020
- May 2020
- April 2020
- March 2020
- February 2020
- January 2020
- December 2019
- November 2019
- October 2019
- September 2019
- August 2019
- July 2019
- June 2019
- May 2019
- April 2019
- March 2019
- February 2019
- January 2019
- December 2018
- November 2018
- October 2018
- September 2018
- August 2018
- July 2018
- June 2018
- May 2018
- April 2018
- March 2018
- February 2018
- January 2018
- December 2017
- November 2017
- October 2017
- September 2017
- August 2017
- July 2017
- June 2017
- May 2017
- April 2017
- March 2017
- February 2017
- January 2017
- December 2016
- November 2016
- October 2016
- September 2016
- August 2016
- July 2016
- June 2016
- May 2016
- April 2016
- March 2016
- February 2016
- January 2016
- December 2015
- November 2015
- October 2015
- September 2015
- August 2015
- July 2015
- June 2015
- May 2015
- April 2015
- March 2015
- February 2015
- January 2015
- December 2014
- November 2014
- October 2014
- September 2014
- August 2014
- July 2014
- June 2014
- May 2014
- April 2014
- March 2014
- February 2014
- January 2014
- December 2013
- November 2013
- October 2013
- September 2013
- August 2013
- July 2013
- June 2013
- May 2013
- April 2013
- March 2013
- February 2013
- January 2013
- December 2012
- November 2012
- October 2012
- September 2012
- August 2012
- July 2012
- June 2012
- May 2012
- April 2012
- March 2012
- February 2012
- January 2012
- December 2011
- November 2011
- October 2011
- September 2011
- August 2011
- July 2011
- June 2011
- May 2011
- April 2011
- March 2011
- February 2011
- January 2011
- December 2010
- November 2010
- October 2010
- September 2010
- August 2010
- July 2010
- June 2010
- May 2010
- April 2010
- March 2010
- February 2010
- January 2010
- December 2009
- November 2009
- October 2009
- September 2009
- August 2009
- July 2009
- June 2009