4Kids Entertainment, Inc. (Pink Sheets: KIDEQ), the global
children's entertainment and merchandise licensing company ("Company"),
announced today that late last week, the Company received a competing
bid (the "Konami Bid") from 4K Acquisition Corp. (the "Konami Bidder"),
an indirect subsidiary of Konami Corporation, a Japanese corporation
("Konami"). In the competing bid the Konami Bidder offered to purchase
substantially all of the assets of the Company in a transaction under
Section 363 of the Bankruptcy Code. The Konami Bid, in the judgment of
the Company, represented a Qualified Bid under the terms of the Bidding
Procedures ("Bidding Procedures") approved by the United States
Bankruptcy Court for the Southern District of New York ("Court") in the
Company's Bankruptcy Case pending before the Court.
On June 5, 2012, the Company commenced an auction between the stalking
horse bidder, Kidsco Media Ventures LLC (the "Saban Bidder"), an
affiliate of Saban Capital ("Saban"), and the Konami Bidder. During the
auction, each of the bidders made several improved bids. After several
rounds of competitive bidding, the auction was adjourned to allow the
bidders to consider an alternative transaction among the Company, the
Konami Bidder and the Saban Bidder pursuant to which each of the bidders
would acquire certain assets of the Company. The proposed alternative
transaction, if consummated, would result in a substantial improvement
in the proceeds payable to the Company over the last bid made prior to
such adjournment. The possible alternative transaction is conditioned
upon the negotiation of definitive documentation among the Company, the
Konami Bidder and the Saban Bidder and the approval of such alternative
transaction by the Bankruptcy Court. There can be no assurance that such
alternative transaction will be completed.
The Konami Bidder and the Saban Bidder have each agreed that their last
bids made prior to the adjournment of the auction will remain binding
until July 31, 2012. The last bids made by the respective bidders prior
to the adjournment of the auction will result in the Company realizing
additional proceeds from the sale of assets when compared to each of the
stalking horse bid set forth in the Asset Purchase Agreement entered
into between the Company and the Saban Bidder as of April 25, 2012 and
the Qualified Bid submitted by the Konami Bidder prior to the auction.
If the proposed alternative transaction is not consummated by the
Company, the Konami Bidder and the Saban Bidder, the Company will resume
About 4Kids Entertainment, Inc.
With U.S. headquarters in New York City, and international offices in
London, 4Kids Entertainment, Inc. (Pink Sheets: KIDEQ) is a global
organization devoted to the creation, development, production,
broadcasting, distribution, licensing and manufacturing of children's
Through its subsidiaries, 4Kids produces animated television series and
films, distributes 4Kids' produced or licensed animated television
series for the domestic and international television and home video
markets, licenses merchandising rights worldwide to 4Kids' owned or
represented properties, operates Websites to support 4Kids' owned or
represented properties. Additionally, the Company programs and sells the
national advertising time in "The CW4Kids" five-hour Saturday morning
block on The CW television network.
Additional information is available on the www.4KidsEntertainment.com
corporate Website and at the www.4Kids.tv
game station site.
The information contained in this press release, other than
historical information, consists of forward-looking statements within
the meaning of the Private Securities Litigation Reform Act of 1995.
These statements may involve risks and uncertainties that could cause
actual results to differ materially from those described in such
statements. Although the Company believes that the expectations
reflected in such forward-looking statements are reasonable, it can give
no assurance that such expectations will prove to have been correct.
Important factors beyond the Company's control, including general
economic conditions, consumer spending levels, competition from toy
companies, motion picture studios and other licensing companies, the
uncertainty of public response to the Company's properties and other
factors could cause actual results to differ materially from the
4Kids Entertainment, Inc.
Bruce R. Foster,