Cookie Jar Group

Origins and Rise as CINAR

CINAR Films Inc. was founded in 1976 by Micheline Charest and Ronald A. Weinberg, initially operating as a film and television distribution company after the couple met in New Orleans and later worked in New York City. The company shifted its focus from distribution to production in 1984, relocating its operations to Montreal, Quebec, to concentrate on family-oriented television programming. CINAR went public in September 1993, providing capital for significant expansion through both original production and strategic acquisitions. The company's strategy involved not only producing original content but also acquiring and dubbing international series for North American audiences, such as The World of David the Gnome and the Japanese series Adventures of the Little Koala and Ronin Warriors .

The company's production slate was extensive and influential, encompassing both animation and live-action series. CINAR was directly involved in producing or co-producing a wide array of celebrated children's series that defined a generation of Canadian television. Its most notable and enduring production was the animated series Arthur, based on the books by Marc Brown, which became a global phenomenon. Other key productions from this era included the educational series Zoboomafoo, the preschool hit Caillou, and shows like Are You Afraid of the Dark?, The Busy World of Richard Scarry, Mona the Vampire, Emily of New Moon, and Space Cases. The company also operated a dubbing studio in Mexico City, Fandango Studios, to facilitate its international distribution efforts. In December 1998, reflecting its diversified business beyond just film, the company formally changed its corporate name to CINAR Corporation.

CINAR's growth was fueled by targeted acquisitions that expanded its library and geographic reach. In November 1996, the company purchased the programming library and animation unit of the London-based FilmFair from the Caspian Group for $10.5 million. This led to the launch of CINAR Europe in March 1997, a dedicated European production and distribution studio aimed at reviving properties like The Wombles and The Adventures of Paddington Bear. The company also acquired the film library of Leucadia Film Corporation in February 1999 and later that year added 55 titles from the WonderWorks library. In October 1995, CINAR signed a five-year Canadian home video distribution deal with Sony Wonder, a subdivision of Sony Music Entertainment, which was renewed for another five years in October 2000. The company also formed CINAR Music in January 1996 to produce audio products based on its properties.

Financial Scandal and Downfall

CINAR's rapid success unravelled in March 2000 when an internal audit revealed that approximately $167 million CAD had been invested into Bahamian bank accounts without the approval of the company's board of directors. This discovery triggered a cascade of investigations that exposed systemic misconduct spanning several years. Regulators and authorities found that CINAR had been claiming federal grants and tax credits intended for Canadian content productions while secretly using and paying American screenwriters, having received over $50 million in such tax benefits. To maintain the illusion of domestic production, the company listed Canadian citizens, including Hélène Charest, the sister of Quebec Liberal Party leader Jean Charest, as writers on over 100 episodes they did not write. While the company denied criminal wrongdoing, it reached settlements totalling $17.8 million CAD with Canadian and Quebec tax authorities and another $2.6 million CAD with Telefilm Canada, a federal funding agency.

The scandal had devastating consequences for the company and its founders, leading to a complete loss of investor confidence. CINAR's stock value plummeted, leading to its delisting from public markets. In 2001, as part of a settlement with the Quebec Securities Commission, founders Micheline Charest and Ronald Weinberg each agreed to pay $1 million and were banned from serving as directors or officers of any publicly traded Canadian company for five years, though they admitted no guilt. Charest died in April 2004 before any criminal proceedings concluded. A lengthy legal process followed, resulting in criminal charges against several executives. On June 22, 2016, Ronald Weinberg was sentenced to eight years and eleven months in prison for securities fraud. Chief financial officer Hasanain Panju and another associate, Lino Matteo of Mount Real Corporation, each received sentences of seven years and eleven months. Weinberg was fully paroled on May 3, 2019. The scheme was alleged to have involved John Xanthoudakis of Norshield Investment Group, and investigators claimed funds were transferred out of CINAR through complicated transactions to offshore holding companies controlled by the principals.

Rebirth as Cookie Jar Group

In October 2003, amidst the fallout from the scandal, it was announced that CINAR would be sold to an investment group led by Michael Hirsh, the founder of rival animation studio Nelvana, for over $190 million CAD. The group also included former Nelvana president Toper Taylor and the private fund TD Capital. The deal closed on March 15, 2004, and the company was taken private. Just two weeks later, on March 28, Hirsh announced a comprehensive rebranding, relaunching the company as the Cookie Jar Group. The new structure combined an entertainment division, housing the former CINAR and FilmFair assets, with an educational division that included acquisitions like Carson-Dellosa Publishing and HighReach Learning. The company relocated its headquarters from Montreal to Toronto, where Hirsh lived. The first new project announced under the Cookie Jar name was the teen series Dark Oracle, and the company soon launched what it deemed its flagship preschool franchise, The Doodlebops, for delivery to Kids' CBC in January 2005.

Cookie Jar pursued an aggressive growth strategy focused on expanding its content library and global reach, opening a Japanese office in May 2004. Its most significant move came on June 20, 2008, when it announced a deal to acquire DIC Entertainment, a major American animation studio. The acquisition was completed on July 23, 2008, and DIC was folded into Cookie Jar's entertainment division. This transaction was a major expansion, nearly doubling Cookie Jar's library to about 6,000 half-hours of programming. It added properties such as Inspector Gadget, Sonic the Hedgehog, Sabrina, Horseland, and rights to brands like Care Bears and Strawberry Shortcake. The deal also brought Cookie Jar a one-third interest in the international children's channel KidsCo, owned in partnership with NBC-Universal and Corus Entertainment, and full ownership of Copyright Promotions Licensing Group (CPLG), a major merchandising and licensing agency. In April 2009, Cookie Jar hired Tom Mazza, formerly of TriStar and Paramount, as executive vice president of worldwide television to broaden its slate with Canadian co-productions intended for global sale.

The company actively sought to acquire additional major character brands to strengthen its merchandising business. In March 2009, Cookie Jar made a $76 million counter bid to American Greetings for the Care Bears and Strawberry Shortcake franchises, having been in negotiations since the DIC acquisition. The deal was not finalized, leading to a series of lawsuits in May 2009, with American Greetings filing a $100 million suit against Cookie Jar and Cookie Jar filing a $25 million suit in return. The company continued to develop new programming, launching an imprint known as The Jar in February 2011 to target primetime television series in the United States. Its development slate included projects for networks like CBS, Fox, Lifetime, and MTV, such as Lords of the Playground and Spyburbia. The private equity sponsors behind Cookie Jar were Birch Hill Equity Partners and the Ontario Municipal Employees Retirement System (OMERS).

Television Programming and Broadcast Blocks

As both CINAR and Cookie Jar, the company was not only a producer but also an active programmer of children's television blocks, particularly in the United States. Following its acquisition of DIC, Cookie Jar took over programming a weekend morning block on CBS. Originally called KEWLopolis under DIC, the block was rebranded as Cookie Jar TV for the 2009-10 television season after CBS renewed its contract with Cookie Jar through 2012 in February 2009. Cookie Jar programmed this block until 2012, after which it was succeeded by CBS Dream Team, programmed by Litton Entertainment. The block featured a rotating lineup of the company's popular series, serving as a key platform for its library. For the 2011-12 season, promotional materials outside the block began referring to it as Team Toon in television promos.

Cookie Jar operated additional programming services to distribute its content and meet U.S. educational broadcasting requirements. On November 1, 2008, the company launched a daily children's block called Cookie Jar Toons on the This TV network, which provided children's and E/I-oriented programming. The company also syndicated the Cookie Jar Kids Network, formerly the DIC Kids Network, to local Fox, MyNetworkTV, and independent stations across the United States. This syndicated block, distributed by Ascent Media, offered stations a source of compliant educational and informational programming and ceased broadcasting on September 18, 2011. These programming blocks were crucial for maintaining the visibility and accessibility of Cookie Jar's vast catalogue of animated series to a broad audience through traditional broadcast channels.

• Cookie Jar TV: The weekend morning block on CBS from 2009 to 2012, renewed through 2012 in February 2009.
• Cookie Jar Toons: A daily block on the This TV network launched on November 1, 2008.
• Cookie Jar Kids Network: A syndicated programming block for local stations that ended on September 18, 2011, distributed by Ascent Media.
• KEWLopolis: The predecessor block on CBS programmed by DIC before the Cookie Jar acquisition.
• Team Toon: The branding used in television promos for Cookie Jar TV during the 2011-12 season.

Digital Initiatives and Final Acquisition

Recognizing the shift in viewing habits, Cookie Jar invested in digital distribution early as a key part of its strategy. In 2009, the company launched Jaroo, a dedicated web-streaming service that served as the first U.S. online home for much of its library, including series like Mona the Vampire and Inspector Gadget. Although Jaroo was discontinued in 2013, the company's digital revenue grew dramatically, reaching $8.0 million for the 12 months ending May 31, 2012. This figure represented a 353 percent growth over the prior 12-month period, as reported in the DHX Media acquisition announcement. This growth highlighted the increasing value of its content library in the emerging streaming marketplace and made the company an attractive acquisition target for firms looking to bolster their digital offerings.

On August 20, 2012, Halifax-based DHX Media Ltd. announced a definitive agreement to acquire Cookie Jar Group for $111 million. The transaction, completed on October 22, 2012, was framed as a move to create Canada's largest independent children's entertainment company and the world's largest independent library of children's programming. The combined entity owned over 8,550 half-hour episodes, with Cookie Jar contributing approximately 6,000 half-hours to DHX's existing library of 2,550. Michael Hirsh, Cookie Jar's CEO, became executive chairman of the combined company, while DHX's Michael Donovan remained CEO. The acquisition was largely a stock deal, with Cookie Jar's shareholders receiving approximately 36 million DHX shares plus $5 million in cash, and DHX assuming $66 million of Cookie Jar debt. Based on the trading price of DHX shares, this implied an enterprise value for Cookie Jar of $111 million.

The acquisition provided DHX with significant scale, adding Cookie Jar's unaudited revenue of $56.7 million and EBITDA of $12.6 million for the last twelve months. DHX projected annual cost synergies of at least $8 million from the consolidation of locations, marketing efficiencies, and integration of operations. Cookie Jar's controlling shareholders, funds managed by Birch Hill Equity Partners, agreed to certain restrictions on the DHX shares they received and, together with other Cookie Jar investors, would own approximately 40 percent of the combined company's equity. Following the conclusion of Johnny Test's sixth season, DHX officially retired the Cookie Jar brand on December 25, 2014, folding all operations and assets under the unified DHX Media name, which was later rebranded to WildBrain in 2019. The deal was characterized by DHX's Michael Donovan as a digital story, noting the shift of family viewing to online sources and the opportunity to sign non-exclusive distribution deals with emerging web-based providers.

Key Properties and Content Library

The legacy of the Cookie Jar Group is fundamentally tied to its vast and well-known library of children's programming, accumulated over nearly four decades. The most important properties in this library originated from its time as CINAR, including the long-running, critically acclaimed series Arthur, the gentle preschool show Caillou, and the live-action music series The Doodlebops. Other notable CINAR-era productions included Zoboomafoo, Are You Afraid of the Dark?, Mona the Vampire, Emily of New Moon, A Bunch of Munsch, The Country Mouse and the City Mouse Adventures, and the English dubs of Ultraseven and The Wonderful Wizard of Oz. The acquisition of DIC Entertainment in 2008 massively expanded this portfolio, adding classic animated franchises such as Inspector Gadget, Sonic the Hedgehog, Sabrina: The Animated Series, Liberty's Kids, and Madeline. The deal also brought with it licensing rights and interests in major character brands like Care Bears and Strawberry Shortcake.

This combined library gave the company, and later DHX Media, an incredibly strong position in global children's entertainment merchandising and licensing. The Copyright Promotions Licensing Group, acquired through DIC, became a powerful vehicle for managing these brands. It had relationships with major consumer companies like McDonald's, General Mills, and Walmart. The depth and variety of its catalogue could be seen in over 160 countries. The library included properties from its history as CINAR, Cookie Jar, and the acquired DIC Entertainment.

Corporate Structure and Business Model

The Cookie Jar Group operated through a distinct divisional structure designed to leverage its content across multiple revenue streams. After the 2004 relaunch, the company was organized into two main divisions: an entertainment division and an education division. The entertainment division housed the legacy production and distribution assets from CINAR and FilmFair, and later DIC Entertainment, focusing on television series development, production, and global distribution. The education division consisted of acquired companies like Carson-Dellosa Publishing, HighReach Learning, and Rainbow Bridge Publishing, which focused on providing educational materials and curricula, creating synergies between popular characters and learning products. This model echoed CINAR's earlier success in licensing its properties into educational markets, which had been a significant factor in its peak market valuation.

The company's business model relied heavily on library monetization through various channels. Primary revenue streams included traditional television licensing and syndication, home video sales, consumer products licensing and merchandising through CPLG, and increasingly, digital distribution deals. The acquisition of DIC was particularly important for enhancing its merchandising capabilities and adding a one-third stake in the KidsCo television channel. Cookie Jar maintained offices in Toronto, Los Angeles, and throughout Western Europe via CPLG. The company was privately held, with its private equity sponsors being Birch Hill Equity Partners and the Ontario Municipal Employees Retirement System (OMERS), and was led by a management team with deep industry experience including CEO Michael Hirsh, President Toper Taylor, and CFO Scott McCaw.

Questions about Cookie Jar Group

What happened to CINAR and why did it change its name?

CINAR, the Montreal-based animation studio, was rocked by a major financial scandal in 2000 involving unauthorized offshore investments and the misuse of Canadian tax credits. This led to a collapse in its stock value, regulatory settlements, and criminal convictions for its executives. In 2004, the company's assets were sold to an investment group led by Michael Hirsh for over $190 million CAD. The new owners rebranded the company as the Cookie Jar Group to mark a fresh start, moving its headquarters to Toronto and shifting its business strategy to combine entertainment and educational divisions.

What were Cookie Jar Group's most famous TV shows?

Cookie Jar Group, through its history as CINAR and its own productions, was responsible for many well-known children's series. Its most famous shows include the educational animated series Arthur, the preschool hit Caillou, and the live-action music show The Doodlebops. Following its 2008 acquisition of DIC Entertainment, its library expanded to include classics like Inspector Gadget, Sonic the Hedgehog, Sabrina, and Madeline. The company also produced or was involved with Are You Afraid of the Dark?, Zoboomafoo, Mona the Vampire, Johnny Test, and Emily of New Moon.

Who owned Cookie Jar Group before DHX Media?

Before its acquisition by DHX Media, Cookie Jar Group was a privately held company owned by a consortium of investors. The controlling shareholders were the private equity firm Birch Hill Equity Partners and the Ontario Municipal Employees Retirement System (OMERS) pension fund. The company was led by CEO Michael Hirsh, the founder of Nelvana, and President Toper Taylor, both of whom had extensive backgrounds in children's entertainment. This ownership group had purchased the assets of the scandal-plagued CINAR in 2004 and built Cookie Jar into a major content library owner, with additional funding from TD Capital at the time of the initial purchase.

When and why was Cookie Jar Group acquired by DHX Media?

DHX Media announced its agreement to acquire Cookie Jar Group on August 20, 2012, and the deal closed on October 22, 2012. The acquisition price was $111 million, paid through a combination of approximately 36 million DHX shares, $5 million in cash, and the assumption of $66 million of Cookie Jar debt. The primary reasons were to achieve significant scale in the children's entertainment market and to capitalize on the rapid growth of digital streaming. The combination created a library of over 8,550 half-hour episodes and was intended to strengthen the combined company's position with digital distributors like Netflix, Amazon, Hulu, and Samsung, with projected annual cost synergies of $8 million.

What was the Cookie Jar TV block on CBS?

Cookie Jar TV was a weekend morning children's programming block on the CBS network that aired from the 2009-10 season through 2012. It succeeded the DIC-programmed block called KEWLopolis after Cookie Jar acquired DIC. CBS renewed its contract with Cookie Jar for the block through 2012 in February 2009. The block featured a rotating schedule of Cookie Jar's animated series, such as Caillou, Inspector Gadget, and Johnny Test. For the 2011-12 season, it was promoted externally in television promos as Team Toon, and it was eventually replaced by the CBS Dream Team block programmed by Litton Entertainment in 2013.

What is the company's legacy in Canadian animation?

The Cookie Jar Group, and its predecessor CINAR, left a significant mark on Canadian animation and children's media. It was a major producer of high-quality, educational, and entertaining content that reached a global audience. Series like Arthur and Caillou became widely recognized. Despite the scandal that tarnished the CINAR name, the creative assets were preserved and expanded under new management. Its vast content library, built over decades through production and acquisitions like DIC, became a central asset of DHX Media (now WildBrain), ensuring that these Canadian-made and distributed shows continue to be available to audiences worldwide.

Sources and further reading

• Cookie Jar Group (Wikipedia)
• DHX Media aquires Cookie Jar to create kids content power (financialpost.com)
• DHX MEDIA TO ACQUIRE COOKIE JAR ... (wildbrain.com)
• Cookie jar entertainment expands brand portfolio, talent ... (birchhillequity.com)
• Cookie Jar Group (Film Production Studio) (hobbydb.com)

Checked by the Yadude Books desk. Last updated 2026-10-30.