In an important development within the media landscape, Blue Ant Media has revealed plans to acquire Boat Rocker Media through a reverse takeover. This acquisition will bring founder Michael MacMillan back to the public markets, marking a notable return for the executive.

The Deal Structure

According to the agreement, Blue Ant, based in Toronto, will acquire all outstanding shares of Boat Rocker Media. The transaction entails the exchange of subordinate voting shares at an exchange ratio of 1.25 Boat Rocker shares for each Blue Ant share. Consequently, this values Boat Rocker shares at CAD$1.80 (approximately $1.26) pre-consolidation, representing a premium of 125% over Boat Rocker’s closing price on March 21 on the Toronto Stock Exchange.

Strategic Implications of the Merger

The merger will result in the formation of Blue Ant Media Corporation, incorporating significant production entities from Boat Rocker, including Insight Productions, Jam Filled Entertainment, and Proper Television. Combined, these companies generated a revenue of around $82.4 million in the calendar year 2024.

MacMillan commented on the acquisition, stating, “This is an opportunistic moment for Blue Ant to go public, paving the way for long-term value creation. We are confident that this transaction will unlock significant value for all shareholders. Through the combination of our public listing, a strengthened balance sheet, and significant net cash post-transaction, we believe that we are strategically positioned for profitable global growth, both organically and through M&A.”

Financial Forecast and Growth Potential

Blue Ant has shown robust financial health, reporting revenues of $136.8 million for the fiscal year ending August 31, 2024, which marks a 16% increase compared to the previous year. The company is also looking to leverage its global footprint, with operations expanding beyond Canada to include offices in major cities worldwide such as Los Angeles, New York, and London.

Ownership and Voting Control Post-Transaction

Upon completion of the transaction, Blue Ant shareholders are anticipated to hold approximately 73.5% of the newly formed entity, while shareholders from Boat Rocker will retain 26.5%. MacMillan will continue to hold substantial voting control, maintaining approximately 77.5% of the total votes through multiple voting shares, which aligns with Canadian broadcasting ownership regulations.

Financial Assets and Future Plans

The acquisition also includes significant financial resources, such as a guaranteed cash balance of $17.8 million and additional funds arising from the monetization of Boat Rocker’s stake in The Initial Group. Additionally, a vendor takeback promissory note worth $12.6 million is part of the agreement.

Concurrent with the reverse takeover, Boat Rocker’s management will execute a buyout of the company’s studio business, exclusive of the production companies transitioning to Blue Ant. This management team will continue to operate independently under the Boat Rocker name.

Market Positioning and Strategy

Following the merger, Blue Ant is well-positioned to address the evolving media landscape characterized by disruptions affecting traditional players. With an increased revenue share of 47% from international markets in 2024—up from 29% in 2020—the company plans to invest in global genres that resonate with diverse audiences, including unscripted content focused on nature, lifestyle, and history.

Leadership Post-Acquisition

MacMillan is set to resume his role as CEO of the new entity, with Brad Martin, currently the chair of Blue Ant, appointed as the chair of the board of directors.