WildBrain Ltd., the owner of IP including “Strawberry Shortcake,” “Teletubbies,” “Yo Gabba Gabba” and “Inspector Gadget,” has acquired Personality AI in a cash-and-stock deal to create interactive experiences through the use of generative AI.
Under the terms of the agreement, WildBrain has acquired 100% of the outstanding shares of Personality AI effective immediately for $11 million in cash, subject to working capital adjustments and holdbacks, and 1 million shares.
The deal also includes $2 million of additional consideration on the first anniversary of closing payable in up to 1 million WildBrain shares with any balance in cash. An additional performance-based cash consideration of up to $56 million is also available tied to Personality AI reaching certain revenue targets in 2027, 2028 and 2o29.
All WildBrain shares issued will be subject to a lock-up period of six months.
Personality AI develops kid-safe, rigorously tested and fully approved single-instance custom AIs for IP holders, which can be deployed across product, platform, location and experience.
Its interactive experiences include time limits, age-appropriate knowledge bases and enriching experiences and moderated interactions. It does not store user voice recordings or any other user Personally Identifiable Information (PII) on devices or remotely.
The firm is also in compliance with the FTC-approved PRIVO COPPA Safe Harbor Program, an independent oversight program for the Federal Children’s Online Privacy Protection Act.
In 2025, Personality AI was selected by Amazon to develop the generative AI platform for its Kids+ subscription service, which includes projects such as Hey Peppa Pig, an interactive voice experience developed with Hasbro that leds kids talk to the titular character through games and activities inspired by the brand’s official series.
The acquisition of Personality AI will extend WildBrain’s ability to monetize its owned and partner IP through interactive experiences and joins the company with a growing pipeline of prospective licensing engagements.
The partnership will create a new engagement engine within WildBrain’s franchise flywheel, extending fan interaction beyond traditional content windows and creating new opportunities for commercial activation. Management believes Personality AI’s business model is well positioned to generate recurring revenue streams with attractive margin characteristics and is expected to be EBITDA accretive in fiscal 2027.
“As fan engagement continues to evolve, we believe interactive AI experiences represent an important new opportunity for brands to connect with audiences in meaningful ways,” WildBrain CEO Josh Scherba said in a statement. “Personality AI enables more continuous interaction between fans and brands, strengthening our ability to deliver end-to-end franchise solutions to partners. This highly complementary acquisition positions us and Personality AI as a more integrated partner to IP owners globally through our in-house licensing agency, WildBrain CPLG, while helping support the continued growth of both our owned and partner brands.”
Personality AI Founder and CEO John Goscha will join the WildBrain leadership team as executive vice president, reporting to WildBrain CEO and President Josh Scherba. He will continue to oversee Personality AI’s team of experts in AI app and product creation.
“I’m thrilled to be joining forces with WildBrain, a clear leader in family entertainment. At Personality AI, we share WildBrain’s commitment to children’s wellbeing, which is why we employ rigorous safety standards to ensure appropriate, authentic and trustworthy content and experiences for kids, parents and IP owners alike,” Gosch added. “I look forward to working with Josh and the WildBrain management team to bring our capabilities to more brands, platforms and audiences around the world while maintaining the high standards of safety, trust and innovation that have defined Personality AI.”