Genius Brands International, Inc. (NasdaqCM:GNUS) acquired a 28.67% stake in Your Family Entertainment AG (DB:RTV) (YFE) from F&M Film und Medien Beteiligungs GMBH for €5.4 million on December 1, 2021. Genius Brands has agreed to acquire 3 million shares of YFE for €3 million in cash and additional €3 million by 2,281,269 of Genius Brands shares, to be followed by a mandatory tender offer to acquire additional outstanding shares of Your Family Entertainment AG at €2 per share. Additionally, Genius Brands plans to invest up to €7 million to further capitalize YFE and invest in growing the global digital and linear channel footprint, as well as launch key intellectual property. Your Family Entertainment AG, subject to Your Family Entertainment AG shareholder approval, will be renamed Genius Family Entertainment AG, and will operate its children's networks under the brand Kartoon Channel! Worldwide. Genius Brands International is entitled to elect an eligible person to the supervisory board of YFE. YFE will maintain its independent listing on the Frankfurt Stock Exchange and will be run by the current Management Board of Stefan Piëch and Bernd Wendeln. Stefan Piëch will further join Genius Brands' Board of Directors in the U.S. Paul Robinson will become Managing Director of Kartoon Channel. SKW Schwarz Rechtsanwälte acted as legal advisor to F&M Film und Medien Beteiligungs GMBH. Rainer Süssmann and Dirk Tuttlies of Beiten Burkhardt Rechtsanwaltsgesellschaft mbH and Mark Greenfield of Norton Rose Fulbright US LLP acted as legal advisors to Genius Brands International, Inc.

Genius Brands International, Inc. (NasdaqCM:GNUS) completed the acquisition of 28.67% stake in Your Family Entertainment AG (DB:RTV) (YFE) from F&M Film und Medien Beteiligungs GMBH on December 1, 2021.