Entertainment One Regulatory News (ETO)

Date: 9 April 2018On behalf of: Entertainment One Ltd.

(the "Company", "eOne", "Entertainment One" or the "Group")

Embargoed until: 0700 hours

Entertainment One Ltd.

Acquisition of UK-based Whizz Kid Entertainment

Entertainment One Ltd. today announces that it has acquired a 70% controlling stake in Whizz Kid Entertainment Limited ("Whizz Kid"), a UK-based non-scripted television production company, from the Whizz Kid Sellers. The acquisition further enhances eOne's non-scripted television production capabilities into the UK, in line with the Group's strategy.

Based in the UK, Whizz Kid was founded in 2006 by Malcolm Gerrie, and has gone on to become a fast-growing and successful non-scripted television production company delivering multiple hit shows including nine seasons of Ex on the Beach, the popular format currently being adapted by eOne for MTV in the US, and Lip Sync Battle UK, and has long-standing relationships with key UK broadcasters including the BBC, Sky, Channel 4, ITV and Channel 5.

eOne has acquired a 70% controlling stake in Whizz Kid for consideration of £6.9 million, which will be satisfied by payment of £5.0 million in cash and the issuance of 637,952 Entertainment One Ltd. common shares (the "Consideration Shares"). A distribution of excess cash held by Whizz Kid on closing is expected to result in a payment of approximately £1.6 million to the Whizz Kid Sellers. Additionally, put and call options have been agreed, with consideration at a capped amount, which will enable eOne to acquire the remaining 30% stake after a five year period. Whizz Kid's results will be fully consolidated in eOne's financial statements.

In its audited financial statements for the year ended 31 March 2017, Whizz Kid reported revenues of £14.2 million, profit before tax of £3.3 million and gross assets of £6.3 million. Adjusted EBITDA for the year ended 31 March 2017 amounted to £1.6 million (2016: £1.0 million).

Malcolm Gerrie and Lisa Chapman will continue to lead Whizz Kid and, as part of the transaction, have entered into new, long term employment agreements. In addition, eOne has also entered into a distribution agreement with Whizz Kid, which will provide the Group with access to high quality, non-scripted programming and formats for exploitation globally.

The Whizz Kid Sellers are comprised of: Ingenious Capital Management Ltd., Malcolm Gerrie, Lisa Chapman, Katherine Allen, Lisa McCormack, Terence Back, Tracey Lloyd, Shane Murray and Caroline Roseman.

Following completion, applications will be made for the Consideration Shares to be admitted to a premium listing on the Official List and to trading on the London Stock Exchange's Main Market for listed securities (together, "Admission"). It is expected that Admission will take place at 8.00 a.m. on 12 April 2018.

Total voting rights

Following Admission becoming effective, the Company's issued share capital will consist of 460,749,271 common shares with voting rights. Therefore, the total number of voting rights in the Company will be 460,749,271. This figure may be used by shareholders in the Company as the denominator for the calculations by which they will determine if they are required to notify their interest in, or a change to their interest in, the Company under the Financial Conduct Authority's Disclosure Guidance and Transparency Rules.

Darren Throop, Chief Executive Officer, commented:

"The addition of Whizz Kid to eOne's non-scripted television business gives us a strong footing in one of the most creative markets in the world. I'm pleased to welcome Malcolm, Lisa and the Whizz Kid team to the Group, and I'm excited about how this new relationship will deliver great new series on both sides of the Atlantic."

Notes to Editors:

Entertainment One Ltd. (LSE:ETO) is a global independent studio that specialises in the development, acquisition, production, financing, distribution and sales of entertainment content. The Company's diversified expertise spans across film, television and music production and sales, family programming, merchandising and licensing, and digital content. Through its global reach and expansive scale, powered by deep local market knowledge, the Company delivers the best content to the world. 

Entertainment One's robust network includes film and television studio The Mark Gordon Company; content creation venture Amblin Partners with Steven Spielberg, DreamWorks Studios, Participant Media, and Reliance Entertainment; newly-launched MAKEREADY with Brad Weston; leading feature film production and global sales company Sierra Pictures; unscripted television production company Renegade 83; world-class music labels Dualtone Music Group and Last Gang; and award-winning digital agency Secret Location. 

The Company's rights library, valued at US$1.7 billion (as at 31 March 2017), is exploited across all media formats and includes about 80,000 hours of film and television content and approximately 40,000 music tracks.

www.entertainmentone.com