paidContent reports, 4Kids Entertainment (NYSE: KDE), the global children’s entertainment and merchandise licensing organization, has put itself up for sale. Sources close with the situation tell paidContent that the company is currently going through a selective bidding process, and speaking to a few interested parties.
With U.S. headquarters in New York City, regional offices for its trading card business in San Diego, California and international offices in London, 4Kids Entertainment, Inc. is one of the larger owners, licensees and distributors of children’s TV in U.S., and is known for brands such as the Pokémon and Yu-Gi-Oh! Japanese anime franchises, Teenage Mutant Ninja Turtles, and Cabbage Patch Kids. Additionally, the company programs and sells the national advertising time in “TheCW4Kids,” the five-hour Saturday morning children’s block which airs nationally on The CW Television Network.
4Kids Entertainment went through 15% staff reduction in December of last year due to the worsening economic environment. Its stock price has been steadily declining for the last several quarters with a 52-wk change of nearly (-80%). In addition, there doesn’t appear to be any sort of catalyst (currently, at least) in terms of powering the shares higher. The co.’s revenues for the year are nearly $60M, on a negative profit margin, trailing 12, of 56%, followed by a negative 49% in operating ones. 4Kids revenues dropped to $10.5 million in Q1’09 one a year-over-year basis while quarterly revenue growth came in at nearly (-33%).
With heavy competition from the likes of Disney, Turner and Nickelodeon, notes paidContent, this might be as best a time as any for the company to sell.
KDE shares are currently trading up 25 cents to $2.11 in New York Stock Exchange trading.