Today, the company formerly known as Genius Brands confirmed that it has officially changed its name to Kartoon Studios (NYSEMKT:TOON). Shares of Kartoon now trade under the “TOON” ticker symbol on the NYSE American exchange. Investors seem to be buying into the news, too. TOON stock is up more than 1% as of this writing, although shares are experiencing some volatility.
What do you need to know about TOON right now?
Well, as the new face of Genius Brands, Kartoon Studios seems to represent a sort of change of focus for the company. That is, Kartoon now appears to be pointed toward its core business of children’s entertainment.
CEO Andy Heyward commented on the origins of the recent name change decision:
“The decision to change the Company’s name to Kartoon Studios is aimed at capturing our primary mission: crafting high-end, ethically conscious animated series for children, marketing them globally, and licensing consumer products featuring our unique characters. In conjunction with the name change, we have transferred our stock listing to the NYSE American exchange […] As we head into our next phase of growth, the timing of these events could not be more perfect for both the Company and our investors.”
TOON Stock and Its First Day of Trading
As mentioned, Genius’ new identity seems to have been accepted in kind by investors today. After all, Toon Media Group represents the company’s large digital distribution network of children’s entertainment consisting of “Kartoon Channel!, Kartoon Channel! Worldwide, Frederator Network, and Ameba.”
One of Kartoon’s single-most-prominent properties is Wow!, the parent of Frederator and Mainframe Studios. Frederator Network is “known for its network of thousands of Youtube animation channels, which rack up over one billion views per month.” If you recall, the company acquired Wow! back in 2022 after announcing the $53 million purchase in October 2021.
Still, despite the popularity of some of its properties, investors haven’t quite shown TOON the kind of love the company has surely hoped for. As of this writing, TOON stock is down 35% year-to-date (YTD).
Whether today’s identity shift brings a change of weather for the company remains to be seen.
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On the date of publication, Shrey Dua did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
