This investment is primarily for speculation on potential growth opportunities based on secured deals announced by management earlier this month. At the current valuation and price, the downside risk is small with a substantial upside. Given that the company does not make a profit currently, evaluating this company against its peers will be difficult. However, by being able to continue production during COVID-19 and securing major media markets around the world, this company's future looks promising.
Please refer to the letter released to shareholders from Chairman & CEO Andy Heyward for a detailed explanation of the growth opportunities.
Dear Friends and Shareholders:
I hope that you and your families are all safe and sound during these challenging times.
While we weather not only our health issues of COVID-19, but also the economic impact that this has had upon us all and our global community, I want to share with you some exciting and positive news occurring within Genius Brands.
While virtually the entire Hollywood entertainment and production community has shut down to a halt, that is not the case at Genius Brands, where we find ourselves thriving and busier than ever with major developments, which will be enriching our asset base, our revenues, and ultimately the company’s profitability. We don’t have theme parks; we don’t have cruise lines; we don’t have Broadway plays; and we don’t make live-action films and TV series on sound stages full of people.
We have one simple business, and it is timeless, evergreen, and international.
We produce animated cartoons.
There is no production shutdown. Our animators are at their workstations drawing. So are our character designers and background painters. Our writers are at their desks turning in scripts. Our voice actors are recording their lines over phone patches. Recently, in fact, we recorded both Warren Buffett and Jennifer Garner from their homes, who lent their voices respectively to newly-produced Secret Millionaires Club and Llama Llama Public Service Announcements teaching kids lessons on handwashing hygiene.
In these days, more people are watching animated cartoons more than ever.
Netflix, where coincidentally our hit series Llama Llama is available, is seeing its highest viewing levels ever. Likewise, this is the case for our own Genius Brands Network, now available in over 100 million U.S. TV households on cable, satellite and OTT platforms, on both advertising and ad-free subscription models.
Against that backdrop,
I am proud and honored today to announce that our upcoming animated series, STAN LEE’S SUPERHERO KINDERGARTEN, will be broadcast in the U.S. on the premiere platform of Amazon Prime. This will join the previously announced partnership of Genius Brands with Alibaba to not just co-produce Superhero Kindergarten with us, but to also be the broadcaster and commercial platform for consumer products in China.
I need to amplify with some detail to underscore the importance of this announcement today.
Alibaba is the largest broadcaster and commercial platform in China.
Amazon is the largest broadcaster and commercial platform in the U.S.Together, they cover the two biggest and most lucrative territories in the world. To put that in perspective, Amazon Prime has over 100 MILLION subscribers in the U.S. That is double the subscriptions of Disney+.
With Stan Lee’s Superhero Kindergarten launching on these two mammoth platforms and commerce from consumer products based on the show driven across them as well, we have what I would call “Plutonium in a Bottle,” launching with a full complement of episodes. 52 x 11-minute episodes….and we expect to shortly announce a broad line up of tiffany consumer product licensees.
In addition to launching on these two mega platforms, Stan Lee’s Superhero Kindergarten will be promoted vigorously across the social media platforms both of Arnold Schwarzenegger and Stan Lee and their combined 70 million followers.
Add to this the global superstar standing of Arnold Schwarzenegger, and Stan Lee, which will drive the key component of parental co-viewing, and it is easy to see how the appeal of this brand is so large. It is not only one of the last shows created by the iconic Stan Lee, creator of Spider-Man, Iron Man, X-Men, Incredible Hulk, Black Panther, Avengers, and so many more…STAN LEE, HIMSELF, IS A STAR IN THE SERIES AS WELL!
Through the medium of animation, we have a digitized version of Stan Lee, who will appear as a cameo in every single episode, just as he has done in each of the Marvel billion-dollar blockbusters that he created over and over again for so many years.
Writing this series is one of the most successful writers in our industry….Fabian Nicieza, who was not only a longtime collaborator of Stan Lee, but also the creator of the huge hit, Deadpool. The pilot script has already been written. We are producing the Main Title sequence, which will be ready within four weeks. Deliveries will begin end of year, and broadcast will be Q1 2021.