HALIFAX - DHX Media Ltd. shares shot to a record high Thursday after the Halifax-based children's entertainment company struck a deal to acquire Family and other children's TV channels for $170-million cash.
The proposed deal with Bell Media, if approved by regulators, will add to DHX's holdings of youth-oriented entertainment, including rights to numerous well-known animated television series.
Family, which gets about 60 per cent of its programming from Disney, has about 5.7 million subscribers and a 29.6 per cent share of the English-language market for viewers aged two years to 17 years.
Bell Media's parent (TSX:BCE) agreed to sell Family as part of the approval process for BCE's acquisition of Astral Media, which also owns a major radio business and an outdoor advertising business.
DHX stock shot up to a record high of $5.74 in early trading. They slipped back later but were still up 26 per cent or $1.09 from the previous close at mid morning, when they traded at $5.26.
The previous 52-week high for DHX stock was $4.33.
DHX owns and markets well-known children's programs such as Inspector Gadget, Johnny Test, Teletubbies and Yo Gabba Gabba!
Under the deal, DHX will also acquire French and English language versions of Disney Junior and Disney XD.
The proposed deal is expected to close in 2014.
BCE shares gained 10 cents to trade at $46.77 at midmorning.