BOCA RATON, FL and MANILA, PHILIPPINES--(Marketwired - Jul 13, 2016) - Grom Holdings Inc., the privately-held parent company of Grom Social Inc., ("Grom" or Grom Social") today announced that it has acquired 100 percent of award-winning, Philippines-based Top Draw Animation ("TDA"). The acquisition of a major international animation producer is the latest step as part of an aggressive growth strategy for Grom Social, the safe social network created "by kids for kids."
TDA, a producer of top-quality animation based in Manila, is one of the leading producers of 2D animation for television markets around the world. TDA is recognized by producers and broadcasters as a provider of quality television animation and currently provides services to many high profile properties, including My Little Pony, Tom and Jerry, and Peabody and Sherman.
"We are fortunate to partner with an international company of TDA's caliber, and we are excited about the production expertise they bring to Grom Social," said Sander Schwartz, president of Grom Social. "After an extensive search, we identified TDA as 'best in class' for their international reputation for top quality animation, excellent management team and long track record of consistent and strong profitability. This acquisition brings Grom Social one step closer to becoming the preeminent online and digital destination for kids."
This transaction enables both companies to benefit from the growing market for kids content in the U.S. and internationally. With the combination of animation expertise, talent and IP held by both companies, Grom Social is poised to ramp up production for inclusion within its growing video library as well as to continue to service TDA's clients around the world. While Grom Social has been producing live-action short form content since its inception, the addition of TDA will enable the company to produce animated content in-house for its ever expanding website and mobile applications.
Wayne Dearing, the CEO, founder and managing director of TDA, will continue to operate TDA and oversee its production of animated content. Dearing will also take on the role of Executive Vice President, Global Finance of Grom Social. Dearing's long career as a financial and operations leader of Hanna Barbera, Australia, Hanna Barbera Asia, and CEO of TDA will be brought to bear at Grom Social and will be an integral part of its strategy to build a vibrant animation production business. In his new role, Dearing will report to Schwartz, and become an integral part of Grom's growth plans for the future.
"The opportunity to join Grom Social and become a part of its growth was a compelling one," said Dearing. "Transforming our company into a major player in digital media has been the focal point of our strategy to grow our business. By joining forces with Grom Social, we will achieve that goal and set the stage for strong growth within both the traditional television animation sector and new animated content for digital media. I can't imagine a better fit for us than Grom Social."
Dearing further stated, "With more than 500 employees based at its headquarters in Manila, TDA is a strong contributor to the local economy and an advocate for harnessing artistic talent in the Philippines and exporting their work to countries around the world. By the combination of these two entities, Grom Social will be able to benefit from TDA's 'best in class' animation for its original content, while TDA will now be able to deploy the creative auspices of Grom Social to build its library of shows for online, for mobile, and across all platforms."
ABOUT TOP DRAW ANIMATION
Top Draw Animation ("TDA"), www.topdrawanimation.com, commenced operations in 1999 and specializes in 2D Digital production methodologies. Top Draw Animation Hong Kong Ltd represents the Group in all business aspects and in turn sub-contracts the production work on an exclusive basis to Top Draw Animation, Inc. in Manila. Manila employs 500 personnel, all housed in 2,175 sq. meters of the PSEC Centre, Ortigas Center, Pasig, and outputs more than two hundred (200) half hours of television annually, making it one of the most prolific producers of animation for television anywhere in the world today. Its clients are successful in their own right and provide year on year repeat business and represent a broad-based geographic profile that currently includes Canada, France, Australia, Spain and the United States.
ABOUT GROM SOCIAL
Grom Social, www.gromsocial.com, is the safe social network created by "kids for kids". Launched in 2012 by then 12-year-old Zach Marks, Grom Social is quickly becoming the leading safe social media platform for children worldwide. With more than 3 million registered members in over 200 countries and territories, Grom Social provides a positive, fun social media environment for children to network, discover original content and play games. Grom Social is dedicated to bringing greater awareness of social responsibility and promoting good digital citizenship. Grom Social has been endorsed by leaders in education and child development, and is trusted by parents. Grom Social delivers an ideal environment for advertisers seeking to reach kids.
This press release contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are based upon our current assumptions, expectations and beliefs concerning future developments and their potential effect on our business. In some cases, you can identify forward-looking statements by the following words: "may," "will," "could," "would," "should," "expect," "intend," "plan," "anticipate," "believe," "approximately," "estimate," "predict," "project," "potential," "continue," "ongoing," or the negative of these terms or other comparable terminology, although the absence of these words does not necessarily mean that a statement is not forward-looking. This information may involve known and unknown risks, uncertainties and other factors which may cause our actual results, performance or achievements to be materially different from the future results, performance or achievements expressed or implied by any forward-looking statements.
Factors that may cause or contribute actual results to differ from these forward-looking statements include, but are not limited to, for example: adverse economic conditions, industry competition, and other risks and uncertainties related to the social media and animation businesses.
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