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Genius Brands International Issues Letter to Shareholders
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BEVERLY HILLS, CA--(Marketwired - Nov 14, 2014) - Genius Brands International (OTCQB: GNUS) issued the following letter to shareholders:

November 14, 2014

Dear Fellow Shareholders:

Tomorrow marks the one-year anniversary of Genius Brands International Inc.'s merger with A Squared Entertainment LLC.

Since the merger, our current management has made enormous strides across all areas of the business. Concurrent with the release of our Q3 10Q, as your Chairman and CEO, I would like to talk about them here. These strides are not only in the functional integration of the two companies, but in the paramount task of creating timeless assets intended to grow shareholder value today, and for many years to come.

The creation of valuable children's intellectual property owned by the company -- and the exploitation of that property through media and the licensing of consumer products -- is the essence of our business. The model we employ is similar to those used by the Walt Disney Company, Pixar, Dreamworks, Hanna Barbera, Marvel, and Warner Brothers Animation in the following ways:

  • We create great animated cartoons.

  • We license the animated cartoons to global media in order to build brand awareness.

  • We license the characters of the cartoons on to consumer products.

This is the exact same model that gave rise to:
Mickey Mouse and Donald Duck, Winnie the Pooh, Lion King, The Little Mermaid, Frozen, Tom and Jerry, Shrek, Scooby Doo, Power Rangers, Ninja Turtles, Barney, Care Bears, Strawberry Shortcake, Flintstones, Muppets, Sesame Street, Transformers, Thomas the Tank Engine, Spider Man, SpongeBob Squarepants, and many other brands whose sales of media and consumer products, are measured not in millions of dollars, but in billions of dollars.

Many of the key executives and creators working at Genius Brands today came from the aforementioned companies and has participated in building assets at those companies.

At the new Genius Brands, we have pursued THREE goals to get our new company to that destination.

  • Focusing on our core competency of building and exploiting a diversified portfolio of children's brands with strong consumer appeal;

  • Maximizing revenues and earning potential from our portfolio; and

  • Minimizing risks and costs in creating the portfolio.

We are highly confident that as we remain focused on our goals, our portfolio of marquee children's brands will yield enormous value and profitability, not unlike the companies and brands above, many of which we have been a part of building.

It is important to recognize that as a company in the animated entertainment space, we face an inevitable lead time between the creation of our assets and the realization of economic or accounting benefit of those assets. The ultimate goal is to create global content with the ability to generate revenue for many years (indeed, decades) to come, from the distribution of the content itself as well as the ancillary consumer product offerings. The cycle from creation to marketplace is generally three years, and it is useful to review the process. Fortunately, several of our brands are already well into the cycle. We have carefully structured our portfolio of properties like a laddered portfolio of bonds.