The Chernin Group-Led Consortium, including eBay Inc., Robert A. Iger and Rich Paul entered into a Stock Purchase Agreement to acquire a 25% stake in Funko, Inc. from ACON Investments, L.L.C. for approximately $260 million.
May 04, 2022
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The Chernin Group-Led Consortium, including eBay Inc. (NasdaqGS:EBAY), Robert A. Iger and Rich Paul entered into a Stock Purchase Agreement to acquire a 25% stake in Funko, Inc. (NasdaqGS:FNKO) from ACON Investments, L.L.C. for approximately $260 million on May 3, 2022. Consortium will acquire from ACON Investments 12,520,559 shares of Funko Class A common stock, or 80% of ACON Investments' stake in Funko, at $21.00 per share and will own 25% of the Company following completion of the transaction. As part of this investment, Funko and eBay are entering into a commercial agreement under which eBay will become the preferred secondary marketplace for Funko and the companies will also partner on creating exclusive product releases. The Chernin Group, LLC (TCG) will designate two directors to the Board including Jesse Jacobs, TCG Co-Founder and Partner. The additional director will be designated at a later date. Robert A. Iger and Peter Chernin, TCG Co-Founder and Partner, will provide guidance and strategic insight as advisors to the Funko Board. On May 4, 2022, Ken Brotman and Adam Kriger resigned from Funko board, contingent on and effective upon the closing of the ACON Sale. On May 16, 2022, the Board elected Richard A. Paul to the Board as a Class I director, to be effective upon the closing of the ACON Sale. The consummation of the transaction is subject to customary closing conditions and is expected to close on or around May 19, 2022.
LionTree Advisors is serving as lead financial advisor to TCG and Stephen Davis is acting as an advisor to TCG. Ari Lanin and Chris Harding of Gibson, Dunn & Crutcher LLP acted as TCG's legal counsels. Goldman Sachs & Co. LLC is acting as lead financial advisor to Funko and Marc Jaffe, Ian Schuman and Benjamin Cohen of Latham & Watkins LLP acting as legal counsels. Winston & Strawn LLP is serving as legal counsel to ACON Investments. Eric McCrath of Morrison & Foerster LLP provided legal counsel to eBay Inc.
Funko, Inc. operates as a pop culture lifestyle brand. The Company is engaged in selling a range of licensed pop culture consumer products, featuring characters from a range of media and entertainment content, including movies, TV shows, video games, music and sports. Its products are principally figures, fashion accessories, apparel, plush products, accessories, homewares, and non-fungible tokens (NFTs). Its products combine its brands and designs and aesthetic sensibilities into properties it licenses from content providers. In addition to offering multiple properties and product categories, it creates and sells a variety of brands that have their own look and feel. The Company's brand portfolio includes Core Collectibles (which include Pop! Vinyl, as well as other branded lines such as Soda, Bitty Pop!, and Pop! Yourself), Loungefly (softlines including bags, wallets, backpacks and apparel) and Other (which includes brands, such as Digital Pop! and Mondo).
The Chernin Group-Led Consortium, including eBay Inc., Robert A. Iger and Rich Paul entered into a Stock Purchase Agreement to acquire a 25% stake in Funko, Inc. from ACON Investments, L.L.C. for approximately $260 million.
FUNKO, INC. 
