Topic: How To Invest

Spinoffs & Takeovers Hotline – Friday, December 2, 2022

Article Excerpt

SPIN MASTER CORP., $34.50, symbol TOY on Toronto, designs and markets children’s toys, games and puzzles. It outsources the manufacturing to third parties. The company’s best-known brands include PAW Patrol, Bakugan, Kinetic Sand, Air Hogs, Hatchimals, Rubik’s Cube and Gund. In addition to toys, it also has a robust digital presence with nearly 50 million monthly active users and a television production business that produces PAW Patrol and 10 other television series. Spin Master originally began operating in 1994. It first sold subordinate voting shares (one vote per share) to the public and began trading on the Toronto exchange on June 30, 2015, at $18.00 a share. Insiders control 95.7% of voting power through multiple voting shares (10 votes per share). The company continues to grow by acquiring new products. Notably, in January 2021, it completed the purchase of Rubik’s Brand Ltd., the maker of the world-famous Rubik’s Cube. Spin Master reportedly paid $50 million to acquire the U.K.-based company. Hungarian inventor Erno Rubik created…