Company Retains Key Frederator Studios IP For Licensing Opportunities

Strategic Transaction Continues Company’s Realignment Towards the Monetization of Premium Intellectual Property

BEVERLY HILLS, Calif., July 17, 2026 (GLOBE NEWSWIRE) -- Kartoon Studios, Inc. (NYSE:TOON) ("Kartoon Studios" or the "Company"), a global entertainment company creating, producing, distributing and licensing children's and family content, today announced the strategic sale of Frederator Networks' Channel Network business in an all-cash transaction. Kartoon Studios will retain key intellectual property of Frederator Studios, including Bee and PuppyCat, Bravest Warriors, Castlevania and Catbug, for distribution and product licensing opportunities.

The strategic sale advances Kartoon Studios' ongoing strategy to align its operating structure and resources on monetization of premium intellectual property, franchise development, animation production, global distribution and consumer-products commercialization.

Total cash consideration paid to Kartoon Studios totaled $500,000 for the Frederator Networks' Channel Network business.