A regional AI video studio, licensed to one operator per territory. The licensee takes a 49% equity stake in the regional subsidiary. Corporate provides sales, production, hiring, training, and quality control. Each branch is positioned for a $30 to $40 million annual revenue target and a $100 million target valuation at maturity.
A short walkthrough of the network, the four founding branches, and the licensing thesis. Worth two minutes before the detail below.
Mid-size web and AV agencies in the $3 to $10 million revenue band are seeing their multiples compress. Brokers we're in contact with (including Web Properties, which specialises in selling videography and web firms) report a consistent pattern. Businesses that previously sold near 5x EBITDA are closing closer to 1x, or not selling at all. Owners with 15 years in the category are looking for an entry point into what the market is paying for now.
Bizarre Bunny offers a license model that wraps a regional AI video studio around the licensee's existing business. The sales infrastructure, production workflow, and quality framework are operational across the founding branches. Corporate hiring, training, and centralised functions are scaling alongside the network rollout.
At 60 employees per branch, the unit economics, regional footprint, and production capability are positioned for what large acquirers in the category have started buying: regional production teams in operating territories. The acquirer set in current conversations sits across studio M&A, broadcast networks, and streaming platforms.
Each branch operates the same way across the network. Corporate handles the four functions below. The licensee runs regional operations, regional sales, and the regional advertising budget.
Production workflow (pitch, onboarding, storyboard, generation, delivery). Platform stack (Canva, Midjourney, Nano Banana, Seedance, Kling). Centralised recruiting, training, and tooling for every Gen AI Producer in the network.
Operates the regional production cell day to day. Reports into corporate workflow standards. Does not maintain a separate production toolchain.
Funnel and brand: studio.bizarrebunny.com, the global content engine, sales decks, and outbound infrastructure. Sales materials are in active use across the network.
Half-time business development hire at signing minimum. Owner-led full-time sales is the stronger configuration. Closes regional accounts using corporate-supplied collateral.
Global brand, paid media, and global funnel. Network-wide outreach is concentrated on aggregators with existing client bases.
Sets and controls a separate regional advertising budget. Corporate is not involved in regional spend.
Quality is set and enforced at corporate. Senior production leads at $200,000 to $300,000 per year are embedded across the network for training and review. Corporate retains final approval rights on regional output.
Operates against corporate-set standards. Independent regional quality systems are not in scope. Corporate review can require re-work on deliverables that fail the standard.
The branches below are the founding operations and are run under direct ownership by the founders. New branches launch under the regional licensing model described on this page. The founding branches anchor the production playbook, the sales infrastructure, and the quality benchmark that licensed branches inherit on day one.
Founding branch. Creative direction, US sales, and large-account fulfilment. Anchors the network's quality benchmark.
UK and EMEA operations. AI production R&D, European go-to-market, and the licensing programme home base.
European production hub. Capacity for cross-branch overflow and regional EU client work.
US central operations. Regional production and sales across the Texas Triangle and the southern US.
Each five-person cell targets up to 80 AI commercials per month at an average of $3,000 per video. Full-output revenue is roughly $240,000 per cell per month and contribution before corporate royalties and tax is roughly $190,000 per cell. A branch at maturity runs 12 cells (60 employees) and targets $30 to $40 million in annual revenue.
Hitting the 80-video monthly target depends on regional sales volume. Lead supply is shared between corporate inbound (studio.bizarrebunny.com plus outbound infrastructure) and licensee-led regional sales. Less than full output is acceptable in early months; the cell still reaches operating cashflow at lower throughput.
Operating cost covers payroll, AI credits, software, and license payments. Tools, accounting, HR, legal, and compliance are consolidated at corporate. Pay floor for production roles sits at $3,200 per month globally; Western-market roles range $6,000 to $11,000 per month depending on seniority. 10% of company equity is reserved for an employee share pool distributed on tenure.
The licensee owns 49% of the regional subsidiary. Bizarre Bunny Corporate Holdings (LLC) owns the remaining 51%. The board has four seats, two local and two corporate, with equal voting weight on regional decisions.
The arrangement is a license, not a franchise. The license structure grants the licensee perpetuity rights to a defined regional territory from signing.
The points below summarise the indicative governance position. Full terms are provided in the license agreement during the diligence phase and should be reviewed with the licensee's counsel.
Territorial exclusivity. Each license grants exclusive operating rights to a defined regional territory. No two Bizarre Bunny branches operate in overlapping territory.
Board deadlock. Operating decisions are subject to a casting-vote mechanism set out in the license agreement. Equity-affecting decisions (issuance, transfer, exit) require unanimity.
Transfer rights. The 49% equity stake is transferable subject to corporate's right of first refusal and approval of any incoming licensee.
Drag-along and tag-along. Standard drag-along and tag-along provisions apply on a network-wide exit. Specific thresholds are detailed in the license agreement.
Dilution. Future capital raises at corporate level do not affect the regional subsidiary's 49/51 cap table. New equity issuance affects corporate's holdings only.
Three operators across creative, commercial, and engineering. The team also runs the founding branches in Los Angeles, Belfast, and Athens.
Two decades of writing, producing, and editing at NBCUniversal, Paramount, and CBS. Sets and enforces the quality benchmark across the network. Based in Los Angeles.
Architect of the regional licensing model. Runs commercial strategy, network expansion, and licensee onboarding. Based in the United States.
Runs UK operations and Belfast branch. Product, AI infrastructure, and client delivery for European accounts. Lead contact for European licensees.
Four checkpoints over the first 90 days. Corporate fulfils inbound regional work during recruitment and training so the branch can sell from day one.
License executed. Corporate begins fulfilling inbound regional work. Corporate HR opens recruitment for the regional team. Licensee begins regional sales activity using the network's existing collateral.
Lead Producer and Lead Editor placed by corporate HR from the existing recruiting pipeline. Regional office secured within a two-hour commute radius of the team.
Three Gen AI Producers placed and trained against corporate standards. The five-person cell delivers regional projects end to end.
Branch reaches operating cashflow. Run rate targeted at $80,000 to $120,000 per month. Recruitment for the second cell begins.
All Bizarre Bunny branches transact with one another at a flat $65 per hour inter-branch rate. A regional team that takes on a contract beyond local capacity routes the overflow to another branch at that rate. The same rate applies in reverse. The single rate keeps inter-branch economics simple to model and audit.
Major projects with cross-branch fulfilment use a 60/40 net profit split: 60% to the branch holding the client relationship, 40% to the fulfilling branch. A branch never declines a contract for capacity. Overflow routes through the network, with corporate routing decisions when more than one branch has capacity.
Branches also receive distributed corporate work. Continuing Medical Education, Continuing Education, video sales letter, and government contracts are won and managed at corporate, then distributed across the network for fulfilment. These categories typically exceed single-branch capacity, which is why they sit at corporate.
"When you work at the highest level, quality stops being optional. The work has to look like it's coming right off the lot of a studio, not whipped up in a basement." Jon Boden, Bizarre Bunny
Jon Boden brings two decades of writing, producing, and editing at NBCUniversal, Paramount, and CBS. The quality benchmark across the network is set against that work. Corporate recruits senior production leads at $200,000 to $300,000 per year and embeds them in semi-weekly training across every regional team. Training infrastructure, the AI credit pool, the software stack, and quality review are corporate functions.
Every regional deliverable is reviewed against a fixed standard before release. Corporate retains final approval and can require re-work on output that fails the standard. Common failure modes include unnatural human renders, dated CGI behaviour, and amateur lighting.
$300,000 license fee, perpetuity. Two payment options, both financed by corporate.
Included with the license: the operating playbook, sales infrastructure, ongoing quality and training oversight, corporate hiring and training, and day-one access to the inter-branch network.
Software, AI credits, accounting, legal, and compliance are managed at corporate.
Each branch is positioned for a $100 million valuation at 60 employees. The exit is timed for 2027.
3.5x EBITDA is the floor multiplier in current category transactions. Multiples are projected to sit higher by 2027.
Acquirers currently in conversation include studio M&A specialists, broadcast networks, and streaming platforms. The thesis is that large acquirers are buying regional employee bases. Each branch is structured to fit that profile.
The licensee's 49% equity stake participates in the branch exit on a pro rata basis. Employees participate via the 10% share pool, distributed on tenure.
The points below summarise the indicative position on the questions licensees ask most often. Full terms are detailed in the license agreement.
Is my territory exclusive?
Yes. Each license grants exclusive operating rights to a defined regional territory. No two Bizarre Bunny branches operate in overlapping territory.
What happens to my existing client base?
Licensees fold existing video work into the Bizarre Bunny studio. Non-video work the licensee does today (web, design, retainers) sits outside the studio and continues under the licensee's existing brand.
Do I keep my existing brand?
Yes. Most licensees operate the Bizarre Bunny studio inside or alongside their existing agency brand. Bizarre Bunny is the studio brand on regional video work; the licensee's brand carries everything else.
Where do the producers come from?
Corporate maintains a global recruiting and training function actively building the talent pool. Senior hires (Lead Producer, Lead Editor) are placed by corporate HR within 30 days of signing. Gen AI Producers are placed by day 60.
Who has casting vote on a 2-2 board deadlock?
Operating decisions are subject to a casting-vote mechanism set out in the license agreement. Equity-affecting decisions (issuance, transfer, exit) require unanimity.
Can I sell my license or my equity stake?
The 49% equity stake is transferable subject to corporate's right of first refusal and approval of any incoming licensee.
What if my regional output fails the quality standard?
Corporate quality review can reject a deliverable and require re-work before release. Repeated failures trigger remediation steps detailed in the license agreement.
Is the $100 million valuation guaranteed?
No. It is a target structure, not a promise. Branch valuation depends on revenue, EBITDA, and exit-timing market conditions at the date of any actual transaction.
What happens if AI video pricing collapses?
Pricing risk is real. The thesis assumes AI video stays in the $1,500 to $5,000 per-piece range over the next 24 to 36 months. The model is built on regional service relationships, which are harder to commoditise than the production itself.
Why does this need to happen now?
Category multiples are low and acquirer interest is concentrated. Each licensed branch needs 18 to 24 months to scale to a 60-employee profile, which times an exit window into 2027.
The risks below are the ones we consider material. They are not exhaustive. Licensees should review the full license agreement and consult independent legal and financial advisors before committing.
The 90-day operating cashflow target is aggressive. Recruitment timing, regional sales ramp, and team productivity may all push the milestone beyond 90 days.
AI video is a deflating category. The $3,000 average per-video assumption may compress as supply increases. The model's defensibility is in regional client relationships, not production cost.
Senior production leads at $200,000 to $300,000 per year are scarce. Corporate recruiting effectiveness is a key dependency for branch onboarding speed.
The AI platform stack changes rapidly. Tools used today (Kling, Seedance, Nano Banana, Midjourney) may be replaced within the licensing term. Workflow continuity is a corporate function but cannot be guaranteed.
AI content regulation is evolving in the EU, the UK, and parts of the US. Future regulation may affect production cost, disclosure obligations, or category eligibility.
The $100 million valuation target depends on the 2027 acquirer market. Multiples may not expand as projected. There is no guaranteed exit path.
The inter-branch network creates dependencies between branches. Underperformance in one branch can affect the network's reputation and its share of corporate-routed work.
Operating costs run at $40,000 to $50,000 per month per cell from day 30 onward. Licensees should plan for at least three months of operating capital independent of regional revenue.
Include your region, your background, and the scale of business you currently operate. Tim Morris will respond if the territory is open and the fit warrants a conversation.
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