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Scholastic acquires Cottage Door Press to expand early childhood publishing

Scholastic acquires Cottage Door Press to expand early childhood publishing

Money Moves

The children's publisher adds a fast-growing board book specialist as it pushes into new formats and channels

Today: Scholastic announces Cottage Door Press acquisition

Overview

Updated 1 hour ago

Scholastic, the world's largest publisher and distributor of children's books, announced on September 29, 2026 that it will acquire Cottage Door Press, a fast-growing maker of early childhood books known for its board books and interactive formats. The companies did not disclose the purchase price, but the deal deepens Scholastic's hold on the youngest readers, the entry point for its entire book franchise ecosystem.

The acquisition is the second major capability-buy in two years for Scholastic, following its June 2024 purchase of 9 Story Media Group, a Canadian children's TV production studio. Together the deals show a single strategy: take Scholastic's book characters and extend them across screens, formats, and retail channels rather than relying on paperback sales through school book fairs alone.

Why it matters

Early childhood is the gateway to book-buying habits. Controlling that shelf position gives Scholastic a pipeline of readers for its franchises for years.

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Key Indicators

CAD $250M
Price Scholastic paid for 9 Story Media Group (2024)
Closed June 2024 for approximately USD $182 million; the company's prior capability acquisition.
$216.8M
Scholastic fiscal Q1 2027 revenue (ended Aug 31, 2026)
Down 4% year over year, with Education and Children's Book Publishing declines partly offset by higher Entertainment revenue.
2-4%
Scholastic fiscal 2027 revenue growth outlook
Affirmed September 24, 2026, with Adjusted EBITDA of $135-145 million and free cash flow of $35-40 million.
$104M
9 Story's revenue in its fiscal year ended Aug 31, 2023
The 9 Story business Scholastic acquired reported roughly $104 million in sales that year.

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People Involved

Organizations Involved

Timeline

March 2024 September 2026

4 events Latest: Today
Tap a bar to jump to that date
  1. Scholastic announces Cottage Door Press acquisition

    Today M&A

    Scholastic says it will buy the early childhood board book publisher; terms not disclosed.

  2. Scholastic reports fiscal Q1 2027 results

    Financial

    Revenue down 4% to $216.8 million; company affirms 2-4% full-year growth outlook and $135-145 million EBITDA.

  3. 9 Story acquisition closes

    M&A

    Scholastic closed the deal after receiving a satisfactory opinion from the Minister of Canadian Heritage.

  4. Scholastic signs deal for 9 Story Media Group

    M&A

    Announced agreement to acquire 100% of economic interest in the Canadian children's TV studio for CAD $250 million.

Scenarios

1

Cottage Door deal closes as announced; price and integration timeline set

Likely Resolves by Q1 2027

Discussed by: Scholastic management, following the precedent of the 9 Story deal that closed in about three months

The deal clears regulatory review and closes within one to two quarters. Scholastic consolidates Cottage Door into its children's book publishing segment, keeps the brand and format expertise, and uses the acquisition to expand board book distribution through its school book fair channel. The price becomes public in the purchase agreement or next earnings report.

2

Deal delayed by regulatory review or renegotiated terms

Unlikely Resolves by Q2 2027

Discussed by: Comes into play only if the transaction price was large enough to trigger antitrust scrutiny; unlikely for a board book publisher

A regulatory review extends the timeline past fiscal 2027, or the parties renegotiate the price after a due diligence finding. Scholastic's own guidance could slip if the deal becomes a distraction. Either outcome would show up as a revised closing timeline rather than a cancellation.

3

Deal closes but integration disappoints; early childhood growth stalls

Possible Resolves by Jul 31, 2027

Discussed by: Observers watching the pattern of publisher acquisitions of format specialists

Scholastic closes the deal but fails to move Cottage Door's board books through its school channels at the projected rate, or Cottage Door's retail relationships erode during the transition. Growth in the early childhood category underperforms the 2-4% company outlook, showing up in fiscal 2027 or 2028 segment results.

Historical Context

2 moments from history that rhyme with this story — and how they unfolded.

January-May 2006

Disney acquires Pixar (2006)

The Walt Disney Company bought Pixar Animation Studios for $7.4 billion in stock, bringing in Steve Jobs, John Lasseter, and a culture of technological innovation in animation.

Then

Disney gained a proven animation pipeline and creative leadership that had repeatedly outperformed its own studios.

Now

The acquisition revived Disney's animation business and turned Pixar's intellectual property into a multi-billion-dollar franchise engine across films, parks, and merchandise.

Why this matters now

Like Disney buying Pixar, Scholastic is acquiring a smaller, faster innovator in a format (board books, interactive early childhood) where its own core publishing had less strength. The bet is that the acquirer's distribution muscle multiplies the target's creative output.

March-June 2024

Scholastic acquires 9 Story Media Group (2024)

Scholastic agreed to buy 9 Story, a Toronto-based producer of children's television, for CAD $250 million (about USD $182 million). The studio had about $104 million in annual revenue and production facilities in New York, Dublin, and Bali.

Then

Scholastic gained in-house production, distribution, and licensing for turning its book characters into screen content.

Now

The deal created a new consolidated reporting segment for entertainment and positioned Scholastic as a multi-format franchise builder rather than a print-only publisher.

Why this matters now

The Cottage Door acquisition follows the same playbook: buy an outside innovator to gain a format or channel capability, then feed it Scholastic's franchises.

Sources

(4)