Teletubbies owner WildBrain has acquired Personality AI in an $11 million cash-and-stock deal as it looks to develop safer conversational AI experiences for children in partnership with major intellectual property owners.
According to The Hollywood Reporter, Personality AI, which launched a year ago, develops technology that allows companies to create interactive characters powered by generative artificial intelligence.
Following the acquisition, WildBrain and Personality AI will work with IP owners to develop interactive experiences across toys, apps and digital platforms through licensing agreements.
The deal comes amid growing concerns over children forming relationships with AI “friends”.
WildBrain, a Canadian children’s and family entertainment company, told The Hollywood Reporter that Personality AI’s products are not open-ended platforms and undergo testing designed to ensure safer interactions for children.
One example is Hey Peppa Pig, an interactive voice experience developed with Hasbro that allows children to talk with Peppa Pig through Amazon Fire Kids tablets.
Under the agreement, WildBrain has acquired all outstanding shares of Personality AI for $11 million in cash and one million WildBrain shares.
Personality AI will receive an additional $2 million on the first anniversary of the deal’s completion, while up to $56 million in additional cash could be paid depending on the company meeting performance targets over the three calendar years through 2029.
Personality AI founder and CEO John Goscha will join WildBrain as executive vice president of Personality AI, alongside his team of technology experts.
The division will report to WildBrain president and CEO Josh Scherba.
Welcoming Goscha and his team, Scherba said the company’s strategy is focused on building long-term value by expanding its intellectual properties globally.
He added that as fan engagement evolves, interactive AI could offer brands a new way to connect with audiences.
WildBrain’s move into AI comes after the company sold a significant stake in another major children’s entertainment property.
In December 2025, Sony Pictures Entertainment and Sony Music Entertainment Japan acquired a 41% stake in Peanuts Holdings LLC from WildBrain for $460 million.
The company controls the intellectual property rights to Charles M. Schulz’s iconic characters, including Charlie Brown and Snoopy.
