Chernin Group Leads Deal for 25% Stake in Funko for $263 Million, Investors Include Bob Iger

variety.com:

Todd Spangler NY Digital EditorThe Chernin Group, Peter Chernin’s investment firm, announced that it is buying 25% of Funko, the pop-culture collectibles company, leading a group of investors that includes former Disney chief Bob Iger.The consortium led by TCG will make a $263 million strategic investment in Funko, acquiring 80% of ACON Investments’ shares in Funko Class A common stock for $21/share.

Along with Iger, investors in the consortium include eBay and Rich Paul, CEO and founder of Klutch Sports Group and UTA’s head of sports.Shares of Funko shot up more than 40% in after-hours trading on the investment news as well as Funko’s first-quarter 2022 earnings report topping Wall Street expectations.“We believe Funko is significantly undervalued in the public markets and at this highly attractive entry price provides a runway of opportunity and growth potential,” Peter Chernin said in a statement. “There are many areas of identifiable growth across content, commerce, marketplaces, consumer products and technology that should drive substantial increases to Funko’s performance.” With the investment, Chernin Group will designate two directors to the board including Jesse Jacobs, TCG co-founder and partner, with the other to be announced.

Iger and Peter Chernin will serve as strategic advisers to the Funko board. Paul will provide input to the company to “advance Funko’s continued product expansion and growth opportunities in sports and music.”In addition, with the investment, Funko and eBay are entering into a commercial agreement under which eBay will become the preferred secondary marketplace for Funko.