HIT Entertainment

HIT Entertainment Limited

Company type	Private (after 2005)
Industry	Entertainment
Predecessor	Henson International Television
Founded	1982
Founder	Jim Henson, Peter Orton, Sophie Turner Laing
Defunct	2016 (fully integrated into Mattel Creations)
Fate	Purchased by Mattel in 2012; integrated into Mattel Creations in 2016
Successor	Mattel Creations
Headquarters	United Kingdom / United States
Area served	Worldwide
Key people	Peter Orton (co-founder), Rob Lawes (former CEO), Jeffrey D. Dunn (former CEO)
Products	Children's television franchises including Thomas & Friends, Fireman Sam, Bob the Builder, Pingu, Barney & Friends, Angelina Ballerina
Owner	Mattel (since 2012)
Parent	Mattel (2012–2016)

HIT Entertainment Limited (branded as HiT) was a British-American company in the entertainment sector, established in 1982 under the name Henson International Television. It served as the international distribution division of The Jim Henson Company and was co-founded by Jim Henson, Peter Orton, and Sophie Turner Laing. In 1989, after Jim Henson intended to sell to The Walt Disney Company, Peter Orton acquired full ownership. HIT managed and distributed well-known children's television franchises such as Thomas & Friends, Fireman Sam, Bob the Builder, Pingu, Barney & Friends, and Angelina Ballerina.

As a founding member alongside NBCUniversal, PBS, and Sesame Workshop, HIT contributed significantly to the launch of PBS Kids Sprout, with numerous HIT programs featured on the channel.

On 1 February 2012, HIT Entertainment was purchased by Mattel, primarily motivated by the acquisition of the Thomas & Friends brand. By 31 March 2016, Mattel fully integrated HIT into its division known as Mattel Creations.

Additionally, HIT created The Little Big Club, a brand initiative showcasing its characters through live events held in shopping centers.

1982–1990: Origins as Henson Associates subsidiary

Entrepreneur and CEO Peter Orton connected with Jim Henson during work on the distribution of Sesame Street. Together in 1982, they founded Henson International Television as the international distribution branch of Jim Henson Productions, with Orton at the helm.

1989–1999: Emergence as an independent entity

Facing potential acquisition negotiations between Jim Henson Productions and The Walt Disney Company, Orton orchestrated a management buyout in October 1989, thereby separating the distribution segment into an independent entity named HIT Communications PLC.

After becoming independent, HIT transitioned away from solely distributing Henson content, focusing instead on securing international rights for series such as Postman Pat, Alvin and the Chipmunks, and later Barney & Friends. Beginning in 1991, HIT expanded into co-productions with titles like Where's Wally? and Captain Zed and the Zee Zone, while also financing animated adaptations of classics including The Wind in the Willows and Peter Rabbit. British broadcaster Flextech invested approximately £600,000 to acquire a 23% share.

By the mid-1990s, HIT's Wildlife division, which specialized in nature programming, accounted for roughly 35% of its revenue.

Riding on Barney's popularity, HIT ventured into original content creation and debuted on the AIM in 1996. This capital influx supported HIT Video’s production of direct-to-video content within the UK.

A significant development occurred in 1996 when advertising professional Keith Chapman proposed the concept of Bob the Builder. Despite earlier rejections by other producers, HIT secured rights to develop this character into a television series while ensuring Chapman retained ongoing copyright interests and involvement in branding.

In 1997, HIT enhanced its capital base through a London Stock Exchange listing to finance original productions including Brambly Hedge, Percy the Park Keeper, and ITV’s successful series Kipper.

The year 1998 saw HIT establish HOT Animation studio alongside launching a Consumer Products Division. The BBC agreed to air Bob the Builder. Strategic alliances in the U.S. followed with Nickelodeon broadcasting Kipper, Starz/Encore airing Brambly Hedge and Percy the Park Keeper, HBO Family featuring Anthony Ant, and Animal Planet showcasing wildlife programming. Notably, Kipper earned the BAFTA Award for Best Children's Animation that year. Additionally, HIT completed another share issue.

By 1999, HIT managed ten first-run series within the U.S. market and had launched an American subsidiary. April marked the UK premiere of Bob the Builder on BBC; July brought another public offering. In December, a deal was struck granting Nickelodeon U.S. broadcast rights for Bob the Builder starting January 2001. Furthermore, Mattel secured a five-year licensing contract to produce a television adaptation of Angelina Ballerina.

2000–2004: From Bob the Builder to final independent phase

Early in 2000, HIT explored expanding its character portfolio through merger talks with Britt Allcroft, holder of licenses such as Thomas the Tank Engine, but negotiations collapsed over valuation disagreements. Meanwhile, Bob the Builder maintained strong sales performance, topping charts by December 2000.

In December that year, HIT’s U.S. division partnered with Lyrick Studios, known for distributing Barney & Friends, to release home videos for both Bob the Builder and Kipper. This collaboration paved the way for HIT’s $275 million acquisition of Lyrick Studios, enhancing its marketing and distribution capabilities across North America while boosting international reach for Barney. CEO Rob Lawes led this strategic expansion through acquisitions.

By May 2001, HIT/Lyrick debuted U.S. VHS releases for Bob the Builder and established retail partnerships including Sears-branded stores. Amid financial challenges faced by EM.TV—the then-owner of The Jim Henson Company—HIT participated in bids to acquire TJHC assets. In October 2001, HIT acquired Pingu BV for £16 million.

April 2002 saw HIT divest its wildlife division via a management buyout led by former director Carlos "Carl" Hall; this transfer included 30 hours of programming plus a library of approximately 300 hours to Parthenon Entertainment.

A major acquisition occurred mid-2002 when HIT purchased Gullane Entertainment for £139 million, gaining control over flagship properties like Thomas & Friends, Magic Adventures of Mumfie, and Fireman Sam. Subsequently, August marked opening of a Canadian office in Toronto to support worldwide operations.

In March 2003, Canadian affiliate CCI Entertainment reacquired shares and programming from HIT, reclaiming half of Gullane’s catalogue under CCI Releasing. Later that year in September, HIT premiered its new series Rubbadubbers.

On 1 April 2004, HIT entered a five-year global agreement with The Jim Henson Company covering distribution and production rights for approximately 440 hours of TJHC content—including titles like Fraggle Rock and The Hoobs—and collaborated on new projects such as Frances, sharing copyright ownership. In October 2004, following leadership changes including CEO Rob Lawes’ departure, HIT announced it would launch PBS Kids Sprout—a dedicated preschool channel developed jointly with PBS, Comcast, and Sesame Workshop.

2005–2011: Ownership under Apax Partners

On 22 March 2005, private equity firm Apax Partners acquired HIT for £489.4 million, taking it private; former BBC director general Greg Dyke was appointed chairman. On 26 August that year, HIT joined forces with NBCUniversal, PBS, and Sesame Workshop to launch PBS Kids Sprout—the world’s first dedicated preschool network—providing extensive programming from its catalog.

In February 2006, HIT ceased its U.S.-based DVD sales and distribution operations after signing an agreement with 20th Century Fox Home Entertainment. This arrangement expanded content availability across more than 70,000 retail outlets throughout North America. Distribution responsibilities later transitioned to Lionsgate Home Entertainment, which handled releases from May 2008 until 2014. Meanwhile, HIT continued self-distribution within the UK market.

On 8 March 2007, HIT acquired rights to the popular book franchise Rainbow Magic, broadening its media presence and consumer product offerings. On 22 March that year, it gained full ownership of Fireman Sam by purchasing S4C’s remaining 50% stake; S4C retained Welsh-language broadcasting rights. In September, HIT partnered with Chellomedia to jointly operate JimJam—a children’s television channel—and simultaneously launched its own toy company division. After failing to deliver a new series of Sooty for ITV, HIT placed Sooty Limited/Bridgefilms—which included rights to both Sooty and Magic Adventures of Mumfie—on sale.

Throughout 2008, several intellectual properties were sold: ‘‘Guinness World Records’’ transferred to Ripley Entertainment, ‘‘Magic Adventures of Mumfie’’ reverted back to Britt Allcroft, while ‘‘Sooty’’ was acquired by presenter Richard Cadell. During this period former Nickelodeon executive Jeffrey D. Dunn was appointed CEO; he focused on developing new characters such as ‘‘Mike the Knight’’ alongside revitalizing existing brands. In March that year North American home media distribution shifted from Fox to Lionsgate.

In January 2009, production was announced for ‘‘Little Charley Bear’’, though by October it transferred to Chapman Entertainment; however, HIT retained distribution rights. In March that year HIT launched a Los Angeles-based theatrical film division named HIT Movies under Julia Pistor’s leadership; plans included producing a live-action ‘‘Thomas & Friends’’ feature film scheduled for late 2010.

Early in 2010 saw licensing of ‘‘Thomas & Friends’’ toy rights granted to Mattel. Additionally, partnerships were formed with Hispanic American broadcaster Albavisión to supply approximately 600 hours of content across regional TV channels. By August that year HIT exited from JimJam joint venture but continued providing programming until eventual integration into Mattel.

In April 2011 Apax initiated sale proceedings for HIT Entertainment offering options either for divesting ‘‘Thomas & Friends’’ or other character assets including its stake in PBS Kids Sprout—either separately or combined. Interested parties included major companies such as The Walt Disney Company, Viacom, Mattel, Hasbro, Classic Media, Chorion, and Saban Brands. At this time ‘‘Fireman Sam’’ ranked among top ten best-selling UK character toy franchises per data from The NPD Group. Later that year new co-produced series ‘‘Mike the Knight’’ premiered on networks including Treehouse TV and CBeebies.

2012–2016: Operation as Mattel subsidiary

Main article: Mattel Television

On 24 October 2011 Apax Partners sold HIT Entertainment to Mattel for $680 million excluding its PBS Kids Sprout stake. The transaction finalized on 1 February 2012 making HIT a wholly owned Mattel subsidiary managed under Fisher-Price. The acquisition centered largely around acquiring ‘‘Thomas & Friends’’, which accounted for roughly eighty percent of HIT’s revenue stream aligning closely with Mattel’s marketing strategies.

Although Mattel considered selling off properties like ‘‘Barney’’ and ‘‘Angelina Ballerina’’ in July 2012, these brands were ultimately retained. In May 2014 a home entertainment distribution agreement was secured with Universal Pictures Home Entertainment covering Blu-ray/DVD/digital platforms in U.S./Canada markets. Summer of 2015 witnessed introduction of Thomas Land—a licensed theme area at Edaville USA amusement park located in Massachusetts.

On 6 October 2015 HIT revealed long-term collaboration with Canadian company 9 Story Media Group aimed at relaunching ‘‘Barney & Friends’’ along with ‘‘Angelina Ballerina’’, thereby broadening their preschool content lineup.

Effective from 31 March 2016,HIT was merged into newly formed Mattel Creations division consolidating theatrical film production alongside television/digital content units streamlining Mattel’s global entertainment operations.

External links

• Archived official site
• UK Government's Companies House listing