The Chernin Group Leads $263 Million Investment in Funko, Bob Iger and Rich Paul Among Stakeholders
In a major strategic move, the Chernin Group (TCG) is spearheading a $263 million investment in the popular pop culture lifestyle brand Funko. The investment includes prominent figures like former Disney CEO Bob Iger and sports agent Rich Paul, who are set to play key roles in the company’s future.
Peter Chernin and Iger, who recently departed from his position at Disney, will be joining Funko as advisers to the board. Paul, the CEO and founder of Klutch Sports and head of sports at UTA, will leverage his expertise in the sports and music industries to help Funko expand its reach.
As part of the deal, TCG and its investors will be acquiring over 12.5 million shares from ACON Investments, representing 80% of the company’s position. This transaction will give TCG a 25% stake in Funko once finalized. Additionally, other investors in the deal include eBay, which will become the preferred secondary marketplace for Funko, and the two companies will collaborate on exclusive product releases.
Following the announcement of the investment, shares in Funko surged by 27% in after-hours trading, reflecting the market’s positive response to the news. Chernin expressed his belief that Funko is undervalued in the public markets and sees significant growth potential for the company in various areas such as content, commerce, marketplaces, consumer products, and technology.
TCG has outlined several strategic opportunities for Funko, including expanding its intellectual property holdings, adding new physical and digital categories and brands, growing its direct-to-consumer business, and extending its international presence. Funko CEO Andrew Perlmutter welcomed the investment from TCG, stating that it validates Funko as a leading lifestyle brand with a keen understanding of pop culture trends.
In fiscal 2021, Funko saw a 58% increase in revenue, surpassing $1 billion. The company recently reported a 63% revenue growth in the first quarter of the year, reaching $308 million. Adjusted EBITDA also rose by 22% in the first quarter, following a strong performance in 2021.
Chernin’s firm has a track record of successful investments in companies with highly engaged customer bases, such as Crunchyroll, Goldin Auctions, and Exploding Kittens. The partnership with Funko marks another strategic move for TCG in the entertainment and pop culture space.
Overall, the investment from TCG, along with the involvement of industry veterans like Bob Iger and Rich Paul, positions Funko for continued growth and success in the evolving landscape of pop culture and entertainment. The collaboration between these key stakeholders is expected to drive innovation and value creation for Funko and its loyal fan base.