New York-based property rights manager Classic Media has dropped out of the competition to acquire HIT Ent., home to Bob the Builder,Thomas the Tank Engine and other successful animated shows for kids. Now only private equity company Apax Partners and Vancouver-based film and television distributor Lions Gate are left to fight over the financially troubled company.
Without directly naming Classic Media, HIT said on Friday that one of its suitors had pulled out and noted that Lions Gate is still exercising its right to due diligence after HIT accepted a $917 million takeover bid from Apax. Lions Gate needs to commit to bid by May 13.
Lions Gate’s family entertainment business has been booming with direct-to-video releases based on Mattel’s Barbie toyline and Scholastic’s Clifford the Big Red Dog books, among others. The company also has plans to release toon videos based on the Marvel comics franchise, The Avengers.
The Classic Media library includes Mr. Magoo, Rudolph the Red-nosed Reindeer, Peter Cottontail, Rocky and Bullwinkle, Underdog and Lambchop.
Despite the popularity of Bob the Builder and other HIT commodities, the company has seen home video, licensing and retail revenues slide considerably in the past year, making it a prime target for take-over.
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