WildBrain Ltd. has completed the acquisition of Personality AI, a developer of kid-safe, safe-by-design conversational generative AI character experiences.

The acquisition expands WildBrain’s global capabilities across licensing, franchise management, and content production, introducing a new category of licensable, scalable interactive assets for internal and third-party IP holders.

Strategic Rationale & Key Business Drivers

The integration of Personality AI advances WildBrain’s core strategy through several key areas:

• PRIVO COPPA Safe Harbor Certification: All products undergo independent assessment and certification by an FTC-approved body to ensure strict compliance with the Children’s Online Privacy Protection Act.
• Proven Market Footprint: Personality AI developed Hey Peppa Pig in collaboration with Hasbro and Amazon Kids+, an interactive voice experience available on Fire Kids tablets.
• Franchise Flywheel Enhancement: Enables continuous, always-on fan interaction beyond traditional media content and physical licensing windows.
• Expansion of WildBrain CPLG Capabilities: Broadens the service offering of the internal licensing agency, positioning WildBrain CPLG as an integrated global partner for franchise growth.
• New Monetization Avenues: Unlocks interactive, experiential consumer product categories alongside traditional merchandising programs.
• Leadership & Talent Acquisition: Brings specialized operating and conversational AI technology expertise directly in-house.

Financial Terms & Acquisition Structure

Under the terms of the agreement, WildBrain acquired 100% of Personality AI’s outstanding shares for an upfront closing consideration of approximately US $11 million in cash and 1,000,000 WildBrain shares (subject to customary working capital adjustments and holdbacks). On the first anniversary of closing, vendors will receive an additional US $2 million, payable in up to 1,000,000 WildBrain shares with the remainder in cash.

The transaction structure also includes earn-out provisions with performance-based cash consideration of up to US $56 million, contingent on achieving specific revenue targets across calendar years 2027, 2028, and 2029. Management expects the transaction to be EBITDA accretive in fiscal 2027.

Kid-Safe Architecture & Data Privacy Standards

Personality AI operates on a safety-first architecture built around privacy-by-design principles. The technology incorporates moderated interactions, input from child development experts, age-appropriate knowledge parameters, and built-in session time limits. Crucially, Personality AI does not store user voice recordings or Personally Identifiable Information (PII) on devices or remote servers, ensuring full compliance with global data protection standards.

Leadership Integration

Following the acquisition, John Goscha, Founder and CEO of Personality AI, joins WildBrain’s Executive Leadership Team as Executive Vice President, Personality AI, reporting directly to Josh Scherba, President and CEO of WildBrain. Goscha brings extensive background in technological entrepreneurship, having previously founded IdeaPaint, Lucidity, and Native Voice.

Josh Scherba, President and CEO of WildBrain, says:

“Our strategy at WildBrain is centred on building long-term value by activating IP on a global scale. As fan engagement continues to evolve, we believe interactive AI experiences represent an important new opportunity for brands to connect with audiences in meaningful ways. Personality AI enables more continuous interaction between fans and brands, strengthening our ability to deliver end-to-end franchise solutions to partners.”

John Goscha, Executive Vice President of Personality AI, adds: “At Personality AI, we share WildBrain’s commitment to children’s wellbeing, which is why we employ rigorous safety standards to ensure appropriate, authentic and trustworthy content and experiences for kids, parents and IP owners alike. I look forward to working with Josh and the WildBrain management team to bring our capabilities to more brands, platforms and audiences around the world.”