WildBrain acquires Personality AI to develop safe conversational tools for children

WildBrain, the Canadian children's entertainment company known for properties such as ‘Teletubbies’ and ‘Yo Gabba Gabba!’, has acquired the generative AI startup Personality AI. The deal, valued at up to $69 million, consists of an initial $11 million in cash and stock, with additional payments of $2 million on the first anniversary and up to $56 million in performance-based cash incentives through 2029.

The acquisition aims to integrate WildBrain’s intellectual property with Personality AI’s conversational technology to create interactive, child-safe character experiences across apps, toys, and digital platforms. Personality AI utilizes a team of engineers and child development experts to ensure interactions are safe and do not retain child data. The startup is a participant in the FTC-backed COPPA Safe Harbor Program.

As part of the agreement, Personality AI founder and CEO John Goscha will join WildBrain as executive vice president. WildBrain CEO Josh Scherba stated that the move is intended to build long-term value by activating IP on a global scale through meaningful interactive experiences.