A private investment company is buying a 25% stake in Funko from Everett

EVERETT – A private investment company from Los Angeles has acquired a 25% stake in Funko, a toy manufacturer in Everett.

Chernin’s group and other investors, including former Disney CEO and chairman Robert Eiger and eBayacquired more than 12.5 million shares of Funko shares at $ 21 per share for a total investment of $ 263 million.

The group is known for investing in technology and entertainment.

This is more of a change for the toy manufacturer in pop culture, headquartered in downtown Everett.

In April, Funko closed the Everett distribution center and combined work on a new facility he rents in Arizona.

With the buy-in, Chernin adds two directors to the Funko board: Jesse Jacobs, Chernin’s co-founder and partner, and a second director to be named later.

Iger and Peter Chernin, the group’s CEO, will be advisors who will oversee Funko’s board. Peter Chernin is a former head of Fox.

As part of the deal, Funko and eBay have entered into an agreement that makes eBay the preferred platform for the resale of Funko.

“We believe that Funko is much underestimated in public markets, and with this very attractive entry price, it has ample opportunities and growth potential,” said Peter Chernin.

“There are many areas of identified growth in content, commerce, marketplaces, consumer goods and technology that should significantly increase Funko’s performance,” Chernin said in a statement.

Andrew Pearlmouth, Funko’s new CEO, said the investment “confirms Funko as a leading lifestyle brand with a pulse on what’s trending in pop culture. The Chernin Group is an ideal partner for Funko, drawing on its experience, deep understanding of the markets we serve, and successful work with companies in the field of pop culture and entertainment to create value and drive growth. ”

Chernin’s portfolio includes game maker Exploding Kittens; Crunchyroll anime streaming service; Hodinkee, which sells new and vintage watches; and The Pro’s Closet, an online store that sells used bikes.

Funko went public in 2017 at the Nasdaq Global Select Market under the stock symbol FNKO.

Founded in 1998 in Snohomish by Mike Becker, bubble heads and coin banks based on retro characters and grain mascots were among the first products.

In 2005, Becker sold the company to Brian Mariotti, who expanded the portfolio through licensing deals for popular characters from comics, movies and TV shows.

Funko debuted his signature Pop! The line of vinyl figures of 2010.

Mariotti stepped down as CEO last year, but remains a member of the board. Pearlmouth became CEO in January.

In fiscal year 2021, Funko’s revenue grew 58% to more than $ 1 billion.

According to documents submitted to the US Security and Exchange Commission, for the first quarter of 2022 Funko reported a profit of $ 308 million, which is 63% more than last year.

Janis Podsada: 425-339-3097; jpodsada@heraldnet.com; Twitter: @JanicePods.


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