Pop culture lifestyle brand Funko secures $263m from TCG-led consortium
Funko, an American pop culture lifestyle brand, has secured an investment of $263 million from a consortium led by The Chernin Group (TCG) through a secondary transaction.
Based in Everett, Washington, Funko is engaged in designing, sourcing, and distributing licensed pop culture products across various categories, including vinyl figures, board games, action toys, apparel, plush, accessories, and housewares.
TCG and its investor consortium are purchasing 12,520,559 shares of Funko Class A common stock from ACON Investments. This represents 80% of ACON Investments’ stake in the pop culture lifestyle brand at a price of $21 per share.
After the closing of the transaction, the TCG-led consortium will hold a stake of 25% of Funko.
Other investors in the consortium are eBay, Robert A. Iger, an ex- Disney Chairman and CEO, and Rich Paul, who is the CEO and Founder of Klutch Sports Group and United Talent Agency Head of Sports.
As part of the investment, Funko and eBay are forging a commercial agreement under which the latter will become the preferred secondary marketplace for the pop culture lifestyle brand. Besides, the two firms will partner on creating exclusive releases for products.
Pop culture lifestyle brand Funko secures $263m from TCG-led consortium. Photo courtesy of SounderBruce/Wikipedia.org.
Peter Chernin — TCG Co-Founder and Partner said: “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.”
TCG said that the investment will help strengthen Funko’s position in the pop culture collectibles space as well as advance its strategic growth initiatives.
Andrew Perlmutter — Funko CEO said: “This is a very exciting time to be a part of Funko. We are incredibly appreciative of ACON for their 7 years of collaboration and belief in our company’s long-term potential. This investment from TCG validates Funko as a leading lifestyle brand with a pulse on what’s trending in pop culture.
“TCG is an ideal partner for Funko based on its expertise, deep understanding of the markets we serve, and track record of working successfully with companies in the pop culture and entertainment space to create value and drive growth. With their support, we are even better positioned to continue developing great products that delight our fans and broadening our base through expanded offerings and new categories.”