The company was created for the purpose of exploiting both the intellectual property rights of Chapman's creations and also those of interested third parties.

[3] On 18 March 2004, Chapman announced that Channel 5 and Nick Jr. had greenlit their very first production - Fifi and the Flowertots for a simultaneous premiere in Spring 2005.

[4] On 1 September, the company entered into a distribution deal with Target Entertainment for Fifi outside of North America and the United Kingdom, which Chapman would continue to handle.

[15][16] In July 2011, Chapman Entertainment announced the departure of their MD Greg Lynn ahead of massive company redundancies.

[20] Chapman secured a new non-US and UK distribution deal with Cake Entertainment for its entire catalogue the following month.

[21] In November 2012, Chapman Entertainment announced that the company would be placed into administration, again blaming poor toy sales as the main cause.

The acquisition added to DreamWorks' growing library of family entertainment brands that also includes properties gained when it acquired Classic Media in 2012.