Kartoon Studios (AMEX: TOON) has unveiled plans for its most ambitious project to date: a new Winnie-The-Pooh franchise. This initiative is supported by $30 million in non-dilutive financing from Catalyst Venture Partners, through its subsidiary WTP SPV 1. The financing model is designed to avoid diluting the existing stakeholders of Kartoon Studios, ensuring that shareholders retain their equity while the company expands its portfolio.
The new franchise will feature an animated holiday movie, five holiday specials, and a four-year, 104-episode series. All content will premiere on Amazon Prime Video via Kartoon Channel!’s subscription service on the platform. This move signifies a major expansion for Kartoon Studios, leveraging Amazon.com Inc. (NASDAQ: AMZN) as a distribution partner to reach a global audience.
The initiative also includes a robust merchandise program. Alliance Entertainment Corporation (NASDAQ: AENT) will spearhead the retail distribution, offering exclusive steel case video packages with unique bonus features. These products will be available through major retailers such as Walmart Inc. (NYSE: WMT), Barnes & Noble, and Amazon, marking a significant entry into the consumer market.
Steven A. Horowitz, Sr. Managing Director of WTP SPV, expressed enthusiasm about the project, highlighting the unique opportunity to produce original content based on A.A. Milne’s timeless characters. “Andy Heyward and the team at Kartoon Studios have a long history of producing hit properties for children. An all-star array of award-winning talent across development, production, marketing, consumer products, and distribution has been assembled to manage the brand launch,” Horowitz noted, emphasizing confidence in the venture's profitability and enduring appeal.
Andy Heyward, Chairman & CEO of Kartoon Studios, elaborated on the creative direction for the new Winnie-The-Pooh content. “Disney created an iconic and tremendously successful global brand with ‘Winnie-the-Pooh.’ When the property went into the public domain, we knew we could only undertake creating Pooh for a new generation if we could bring a completely different and unique look that was contemporary and protectable,” Heyward said. The characters and backgrounds will feature a “yarn-based” design, intended to provide depth and warmth, with modern stories inspired by Milne’s original books and told in a “Seussian style” rhyme.
Kartoon Studios is leveraging artificial intelligence (AI) to enhance the production process. “Using both AI and by hand, the unique look of the characters and backgrounds could not have been imagined prior to the advent of AI in our industry,” Heyward explained. This approach aims to bring efficiency, speed to market, and creative innovation to the project.
The project kicks off with an animated Christmas movie set to premiere on December 24, 2025. Alliance Entertainment will concurrently distribute steelcase videos featuring plush toys and special features through its retail and online partners, aligning with the film's release.
Kartoon Studios has a proven track record in merchandising around popular franchises. The company recently launched a dedicated Stan Lee storefront on Amazon, featuring a range of branded apparel and merchandise. This experience is expected to inform their approach to the Winnie-The-Pooh franchise, aiming to replicate prior successes and delight both fans and investors.
If successful, Kartoon Studios’ new Winnie-The-Pooh franchise could become a significant player in the global entertainment and consumer products market, bringing joy to audiences and potential financial gains to stakeholders.
