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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 for $71 million as it pushes into new formats and channels

September 29th, 2026: Scholastic to Acquire Cottage Door Press for $71 Million

Overview

Updated Oct 17

Scholastic, the world's largest publisher and distributor of children's books, announced on September 29 that it will acquire Cottage Door Press, a fast-growing maker of early childhood books, for approximately $71 million. Cottage Door generated about $45 million in net revenue in the 12 months ended May 31, 2026, and was strongly profitable. The deal is expected to close by the end of 2026, with Cottage Door folded into Scholastic's Children's Book Group. Its Luna StoryTime interactive toy line will be spun off before closing and is not part of the purchase.

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 studio, for about USD $182 million. 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

$71M
Purchase price for Cottage Door Press
Approximate cash consideration, subject to customary purchase price adjustments.
$45M
Cottage Door net revenue (12 months ended May 31, 2026)
Cottage Door generated approximately $45 million in net revenue and was strongly profitable during the period.

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People Involved

PW
Peter Warwick
President and Chief Executive Officer, Scholastic Corporation
Leading the company through its format-expansion and acquisition strategy
 Dick Maddrell
Dick Maddrell
Founder and Chief Executive Officer, Cottage Door Press
Leading Cottage Door through its acquisition by Scholastic; will continue with existing team after close

Organizations Involved

Scholastic Corporation
Scholastic Corporation
Public children's publishing and education company
Acquirer; operates children's book publishing, school book fairs, education materials, and media

The global children's publishing, education, and media company listed on the NASDAQ exchange under the symbol SCHL.
Cottage Door Press
Cottage Door Press
Independent early childhood book publisher
Acquisition announced; expected to close by end of 2026

Independent children's publisher specializing in board books and interactive formats, being acquired by Scholastic for $71 million.

Timeline

March 2024 September 2026

5 events Latest: September 29th, 2026 · 1 month ago
Tap a bar to jump to that date

  1. Scholastic to Acquire Cottage Door Press for $71 Million

    Latest M&A

    Scholastic signs definitive agreement to buy Cottage Door Press for approximately $71 million; expected to close by end of 2026. Luna StoryTime will be spun off.

  2. Scholastic stock rises 4.4% on acquisition announcement

    Market Reaction

    Shares of Scholastic climbed about 4.4% in afternoon trading after the Cottage Door deal was announced.

  3. 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.

  4. 9 Story acquisition closes

    M&A

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

  5. 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.

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.

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.

Sources

(7)
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PR Newswire U.S. Securities and Exchange Commission Scholastic Newsroom citybiz Pulse 2.0 EdWeek Market Brief PR Newswire