Moonbug Entertainment Acquires YouTube Juggernaut CocoMelon

Courtesy of Moonbug
CoComelon

The London-based company has also purchased live-action program Blippi.

Moonbug Entertainment is growing its kids content empire. 

The London-based company has acquired top YouTube kids channel CoComelon and live-action program Blippi, a move that boosts its audience to more than 235 million subscribers. Moonbug content is distributed across YouTube, Amazon Prime Video, Netflix, Hulu and other platforms. 

In a statement, Moonbug co-founder and CEO called the purchases "a transformational step for our business." 

The company also announced Thursday that it has raised $120 million from Goldman Sachs' Growth Equity and Fertitta Capital. It expects to use the funding to after additional acquisitions in the children's programming space. 

Launched in 2006, CoComelon creates 3D animation for kids that streams on a YouTube channel with 89 million subscribers, making it the third largest after T-Series and PewDiePie. Characters like Baby JJ and his siblings sing songs and go through everyday activities like cleaning up their toys and getting ready for bed. "We think a lot about our audience and what they're going through," explained creator Jay Jeon in a statement. 

Moonbug will add characters and storylines to the existing CoComelon world and also plans to launch a new toy line based on the brand in the coming weeks. 

Toddler-focused Blippi has an audience of 24 million subscribers for its educational programming. Under the Moonbug umbrella, the show will expand with more episodes and a diverse group of new characters. Moonbug will also look to expand its line of toys and seek other licensing partnerships.