What happened
Shares of Funko (FNKO 1.15%) surged 26.9% on Friday after a star-studded investment group took a large equity stake in the pop culture-focused toy and accessory maker.
So what
In conjunction with its first-quarter earnings report, Funko announced that a consortium of investors led by advisory firm The Chernin Group agreed to acquire a 25% stake in the company. The shares will be purchased from ACON Investments for $263 million, or $21 per share. Members of the consortium include eBay (EBAY -0.14%), former Disney CEO Bob Iger, and respected sports agent Rich Paul.
Image source: Getty Images.
As part of the deal, eBay would become the preferred resale platform for Funko. The two companies also plan to work together to create exclusive new products.
Now what
In addition to the news of the investment by the Chernin Group-led consortium, shareholders were likely pleased with Funko's solid first-quarter revenue and profits metrics. The collectible toymaker's net sales jumped 63% year over year to $308.3 million, while its net income climbed 31% to $14.5 million.
Management expects the company's full-year net sales to grow by as much as 29% to roughly $1.3 billion, with adjusted net income of $98.6 million to $103.8 million.
"Our results in the first quarter were broad-based, with ongoing strength across brand categories, geographies, and channels," CEO Andrew Perlmutter said in a press release. "Looking ahead, we remain intently focused on executing against our strategic growth pillars including innovating within our core collectibles category, revenue diversification, growing our DTC [direct-to-consumer] business, and international opportunities."
