Boat Rocker Media (BRMI) Investor Update summary

Transaction overview

• Sold 51% majority stake in Untitled Entertainment to TPG Global for $51.6 million in cash and an 8.8% equity stake in TPG's new talent management company.

• The deal provides significant cash proceeds, maintains equity exposure, and board representation in the new entity.

• Strengthens relationships with Untitled founders and TPG, with Michel Pratte named CEO and Eric Taitz COO of the new company.

• The transaction is expected to deliver strong shareholder value and aligns with a content-first strategy.

Financial guidance and outlook

• 2024 Adjusted EBITDA guidance reduced to approximately CAD 10 million, reflecting the sale of Untitled and ongoing industry delays.

• Over CAD 75 million in cash now available for investment, with no corporate debt.

• Focus remains on aggressive content investment and prudent cost management to drive long-term growth.

• Management expects IP investments to take time to realize full value but sees this as positioning for sustainable growth.

Industry and market conditions

• Ongoing delays in content commissions and renewals are impacting results, consistent with broader industry trends.

• No structural decline in demand is seen; rather, a slower recovery post-peak TV, COVID, and strikes.

• Buyers are cautious, but significant spending on new content continues.

• Opportunities for M&A and asset acquisitions are expected as industry players adjust to new conditions.