By Gary Symons
TLL Editor in Chief
The founders of Chizcomm have exited Genius Brands over a contractual dispute and conflict over strategic vision.
ChizComm was acquired in November of 2020 by Genius Brands, which has grown rapidly due to an aggressive acquisition strategy. At the time, all seemed like sweetness and light would prevail. This week, however, Chizcomm founders Harold and Jennifer Chizick announced they left the company over a disagreement in vision and on the terms of the acquisition contract.
It now sounds like the parties are headed to court, barring a resolution of their differences.
“We are extremely disappointed to be leaving Genius Brands and ChizComm after less than a year of being with Genius Brands,” the Chizicks said in a statement. “However, our vision on how to best grow the Company does not align well with Genius Brands.
“Last week, Genius Brands imposed organizational changes that reduced our role in the Company and was a breach of our agreement with Genius Brands,” the Chizicks said. “Efforts to resolve this matter in an amicable fashion have been unsuccessful. We believe that we have been terminated on a without cause basis and now have no choice but to depart the Company and explore options for how to recoup the considerable sums remaining due to us.”
Genius Brands responded with its own terse statement, saying Harold and Jennifer Chizick had been fired.
Genius Brands International, Inc., issued a statement this week that Harold Chizick and Jennifer Chizick, employees of the Company’s ChizComm subsidiary, “have been terminated for cause.”
“The Company believes this decision to be in the best interest of its shareholders and customers,” Genius Brands said in a short press release.
“Business will continue as usual under current management, with Donna MacNeil as President of ChizComm and Kathleen Campisano as Global Chief Marketing Officer and General Manager of ChizComm Beacon Media subsidiaries,” the release adds. “The Company is fully invested in the success of these subsidiaries and believes it will be more fully realized under Ms. MacNeil’s and Ms. Campisano’s leadership.”
BACKGROUND OF THE CHIZCOMM ACQUISITION
The global brand management company Genius Brands International announced in November 2020 what it called the “transformative acquisition” of ChizComm Ltd., a leading North American marketing and media agency, as well as its subsidiary ChizComm Beacon Media, a division involved in media research, planning and media buys.
ChizComm was at the time the largest purchaser of children’s media across both traditional and digital platforms in North America, as well as an established leader in PR, media, and marketing within the kids/family media and consumer product sectors. ChizComm was founded by Harold and Jennifer Chizick in 2013. With offices in New Jersey, Los Angeles, and Toronto, the company represented more than 30 major toy companies and some of the most powerful and iconic brands in the children and family media and toy industries.
ChizComm Beacon Media has consistently been ranked the largest media buyer within the Kids 2-11 age group, representing over 32% of total Gross Rating Points (GRPs), but at the time of the buyout, the company had gained more market share and represented 34% of the total GRPs within the Kids 2-11 demographic.
Genius Brands said at the time that Chizcomm’s “unique purchasing power and extensive media relationships across networks, including Viacom, Warner Media, Disney, YouTube and other digital platforms, offer clients an unmatched competitive advantage and access to audiences of all ages.”
“Our strategy has been to accelerate the growth of Genius Brands through smart and accretive acquisitions,” added Genius Brands’ Chairman & CEO Andy Heyward. “ChizComm achieves this goal and more, by driving revenue and generating immediate synergies and strategic opportunities to enhance the core businesses of Genius.”
Ironically, given the rancor that has now developed between the Chizcomm founders and Genius Brands, Heyward said the management teams felt a synergy that would allow them to work together very well.
“ChizComm’s reputation, integrity and unparalleled passion for the industry is completely aligned with what we stand for,” Heyward explained. “Their team has very smartly built an incredible marketing engine with best-in-class ability to connect brands and consumers in a highly competitive market, and we see that as a powerful complement to our forward growth at Genius Brands, including Kartoon Channel.”
The acquisition was completed by February of 2021. In April, Genius Brands appointed Harold Chizick as its president of global content sales, marketing and consumer products.
“ChizComm staff is at the heart of everything we do,” they said in their written statement. “We want to thank this phenomenal team – past and present – that have contributed to building a great organization that prioritizes integrity, drive and passion. And to the ChizComm client base, it has been an honor working in partnership to unlock opportunities and drive growth. Stay tuned for what we do next.”
Related News On This Story
Genius Brands Announces Strategic Acquisition of ChizComm Ltd. and ChizComm Beacon Media