Former Disney CEO Bob Iger Invests in Toy Maker Funko
Posted on 05/07/2022
An investor group made up of former Walt Disney Company CEO Robert A. Iger (Bog Iger), sports agent Rich Paul, eBay Inc., and the Chernin Group (TCG) is buying a 25% stake in toy maker Funko in a secondary transaction. The investment is worth US$ 263 million. Shares of Funko were initially halted on the news on May 5, 2022.
“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,” Chernin said in a statement on May 5, 2022. “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 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 US$ 21.00 per share and will own 25% of Funko following completion of the transaction. Additional investors in the consortium include eBay, Bob Iger 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. Bob Iger and Peter Chernin, TCG Co-Founder and Partner, will provide guidance and strategic insight as advisors to the Funko Board.
Advisors
LionTree Advisors is serving as lead financial advisor to TCG and Stephen Davis is acting as an advisor to TCG. Gibson, Dunn & Crutcher LLP is serving as TCG’s legal counsel. Goldman Sachs & Co. LLC is acting as lead financial advisor to Funko and Latham & Watkins LLP is serving as legal counsel. Winston & Strawn LLP is serving as legal counsel to ACON Investments.