Driver Studios, a New York-based entertainment company delivering family and youth-oriented content and media services, plans to appoint an advisor for a private equity deal within 12 months, said Scott Weitz, co-founder and CEO.

“We do see a lot of opportunities to put capital to use in the future across two sectors – media and kids’ content services,” Weitz said. In both cases, it would create and scale content on YouTube as a service to other brands or for its own proprietary content, he added.

Weitz said he would not rule out a majority sale. The proceeds would be used for the company’s first acquisitions and for organic growth, he added.

Driver Studios has not determined the final amount to be raised but he said it will be “roughly USD 50m.” In addition to private equity, it would consider a strategic investment.

“We’ve been approached by companies interested in investing in the USD 50m range,” he said.

Driver Studios’ ad platform is accessed across mobile devices, tablets, and connected TVs.

“We’re a one-stop shop for kids’ content on YouTube. We create shows that scale because of the IP and software we have, and we create ads direct-to-consumer over our own ad platforms,” Weitz said.

The industry is changing and fewer children access content from cable channels such as Nickelodeon, he noted. Instead, more are turning to streaming from YouTube.

Driver Studios would like to acquire studios to leverage its services and increase viewership of customers’ content to drive sales of the customers’ merchandise, he said. “We want to acquire companies with IP on YouTube – interesting content that could be a brand.” It will seek studios with content that could be used in merchandising and licensing, starting in the US market, he said.

Driver Studios plans to look globally for targets, including in Western Europe and Asian markets such as Japan and India. The company is early in its acquisition search because it hasn’t raised the capital yet, but Weitz said it plans to target firms with enterprise values between USD 500,000 and USD 20m.

In addition to acquisitions, the money raised will be used to grow its own intellectual property including the introduction of The Blahs, an animated series on YouTube, in the coming month.

Competitors on the content side include WildBrain and Moonbug Entertainment, which was acquired by Blackstone-backed Candle Media in 2021.

Earlier this month, Canada-based 9 Story Media Group, which is in a similar space, received a USD 186m investment from Scholastic [NASDAQ:SCHL], he said. In kids’ media, he said it competes with UK-based SuperAwesome, which was acquired by Cary, North Carolina-based Epic Games in 2020.

Driver Studios was cofounded about 23 years ago under the Driver name but established its current business model as Driver Studios more than 10 years ago after raising money from undisclosed venture capital and high-net-worth investors.

The company is comprised of three businesses: a media division that delivers ads primarily to children; a YouTube production company that works with customers such as Coke and Microsoft, and a channel-management business that works with brands such as Mattel, Hasbro and DreamWorks on kids’ content for YouTube, he said.

Weitz said the company is profitable with revenue “well over USD 10m.” It is majority owned by the CEO and co-founder and executive producer JD Williams, and an undisclosed investor.

The company’s original brands include Storytime with Ms. Booksy, The Stupendous Drew Pendous and Crafty Carol from the YouTube Channel Cool School.

Earlier this month, Driver Studios announced a data-privacy partnership with Qonsent to address the industry’s move away from cookies. “We want to create a positive experience for kids with our content,” he said.