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<FONT FACE="Times New Roman, Times, Serif" SIZE=5><B>UNITED STATES <BR> SECURITIES AND EXCHANGE COMMISSION
</B></FONT><BR> <!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" -->
<FONT FACE="Times New Roman,Times, Serif" SIZE=4><B>WASHINGTON, D.C. 20549</B> </FONT><BR><BR>
<!-- MARKER FORMAT-SHEET="Head Major Center Bold-TNR" FSL="Default" --> <FONT FACE="Times New Roman, Times, Serif" SIZE=5><B>FORM 8-K </B></FONT></P> <P
align=CENTER><FONT FACE="Times New Roman, Times, Serif" SIZE=3><B>CURRENT REPORT<BR><BR> PURSUANT TO SECTION 13
OR 15 (d) OF THE <BR>SECURITIES EXCHANGE ACT OF 1934</B></FONT></p>
<!-- MARKER FORMAT-SHEET="Para Large Indent Lv 0-TNR" FSL="Project" --> <P align=center><FONT FACE="Times New Roman, Times, Serif" SIZE=3>Date of Report
(Date of earliest event reported): <B>June 19, 2006</B> </FONT></P> </TD> </TR> </TABLE> <BR> <p><table
width=600><tr><td align=center><font size=2><B>Commission file number 0-7843</B></font></td></tr></table>
<p><table width=600><tr> <td align=center><font size=2><B><font size="6">4Kids Entertainment, Inc.
</font></B></font> <hr noshade align="center" size="1" width="50%"> <font size=2> (Exact name of Registrant as
specified in its charter)</font></td> </tr></table> <p> <table width=600> <tr> <td align=center width="292">
<font size=2><B>New York</B></font> <hr noshade align="center" size="1" width="50%"> <font size=2><B> </B>(State or
other jurisdiction of <br> incorporation or organization) </font></td> <td align=center width="296"><font
size=2><b>13-2691380</b></font> <hr noshade align="center" size="1" width="50%"> <font size=2><b> </b>(I.R.S.
Employer<br> Identification No.)</font></td> </tr> </table> <p> <p><table width=600><tr> <td align=center><font
size=2><B>1414 Avenue of the Americas <BR> New York, New York 10019 <BR> (212) 758-7666 </B></font> <hr noshade
align="center" size="1" width="50%"> <font size=2><B> (</B>Address, including zip code, and telephone number,
including area code,<br> of Registrant&#146;s principal executive offices)</font></td> </tr></table> <BR>
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<TR VALIGN=TOP> <TD> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions: </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT SIZE="1">&nbsp;</FONT></P> <!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" --> </TD> </TR> </TABLE> <BR>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT>
<FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
 <TD ALIGN="left"VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425) </FONT></TD></TR><TR><TD>&nbsp;</TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR>
<TD WIDTH="4%"VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"></FONT>
<FONT FACE="WINGDINGS" SIZE="2"COLOR="#000000">&#168;</FONT><FONT FACE="Times New Roman" SIZE="2"></FONT></TD>
<TD ALIGN="left"VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12) </FONT></TD></TR><TR><TD>&nbsp;</TD></TR></TABLE>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%"> <TR>
 <TD WIDTH="4%" VALIGN="top" ALIGN="left">
<FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT>
<FONT FACE="Times New Roman" SIZE="2"></FONT></TD> <TD ALIGN="left" VALIGN="top">
<FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
</FONT></TD></TR><TR><TD>&nbsp;</TD></TR></TABLE>
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<TD WIDTH="4%" VALIGN="top" ALIGN="left">
<FONT FACE="Times New Roman" SIZE="2"></FONT><FONT FACE="WINGDINGS" SIZE="2" COLOR="#000000">&#168;</FONT>
<FONT FACE="Times New Roman" SIZE="2"></FONT></TD> <TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE>
<BR><BR><BR> <!-- MARKER FORMAT-SHEET="Page Width Begin" FSL="Project" -->
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<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item
1.01&nbsp;&nbsp;Entry into a Material Definitive Agreement </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On June 19, 2006, The Summit Media
Group, Inc. (&#147;Summit&#148;), a wholly owned subsidiary of 4Kids Entertainment, Inc.
(&#147;4Kids&#148;), entered into a Settlement Agreement and Mutual General Release (the
&#147;Settlement Agreement&#148;) with The Beacon Media Group L.L.C. (&#147;Beacon&#148;),
Sheldon Hirsch, Tom Horner and Paul Caldera, collectively (the &#147;Beacon
Defendants&#148;) to settle the law suit filed by Summit in Supreme Court, New York County
against Beacon and the Beacon Defendants. Under the terms of the Settlement Agreement,
Beacon will make payments to Summit or provide media buying services to 4Kids totaling $2
million, over the next few years, in exchange for Summit discontinuing the lawsuit. As
part of the Settlement Agreement, Summit will be winding down its media buying business
and effective July 1, 2006, Summit will no longer serve as a media buying agency for third
parties. Beacon&#146;s payments to Summit will be secured by a security interest in
Beacon&#146;s assets and a pledge of certain membership interests in Beacon. </FONT></P>

<!-- MARKER FORMAT-SHEET="Head Major Left Bold-TNR" FSL="Default" -->
<H1 ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Item
8.01&nbsp;&nbsp;Other Events </FONT></H1>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>On June 23, 2006, the Company issued
a press release reporting the settlement of the lawsuit filed by Summit in Supreme Court,
New York County against Beacon and the Beacon Defendants. A copy of the press release is
attached hereto as Exhibit 99.2. As part of the Settlement Agreement, Summit will be
winding down its media buying business and effective July 1, 2006, Summit will no longer
serve as a media buying agency for third parties. In addition, Summit agreed not to
compete with Beacon in such business. Beacon&#146;s payments to Summit will be secured by
a security interest in Beacon&#146;s assets and a pledge of certain membership interests
in Beacon. </FONT></P>

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<P><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Summit&#146;s revenues were
$6,054,768, $4,117,091 and $3,884,819 in 2005, 2004 and 2003, respectively. Summit&#146;s
net income was $1,702,573, $539,920 and $512,303 in 2005, 2004 and 2003, respectively. For
the quarter ended March 31, 2006, Summit had revenue and a net loss of $541,223 and
($213,577), respectively. Beginning in the second quarter of 2006, Summit&#146;s business
will be accounted for as a discontinued operation on the 4Kids financial statements. </FONT></P>






<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2><B>Item 9.01 Financial
Statements, Pro Forma Financial Information and Exhibits.</B></FONT></P>
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<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)
Exhibits</FONT></P> <!-- MARKER FORMAT-SHEET="Head Sub 1 Left-TNR" FSL="Default" --> <P ALIGN=LEFT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;<U>Exhibit</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Description</U></FONT></P> <P ALIGN=LEFT>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.1 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Settlement Agreement and Mutual General Release dated June 19, 2006</FONT></P>
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>99.2 &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
&nbsp;Press release issued by 4Kids Entertainment, Inc. dated June 21, 2006</FONT></P> <BR><BR>
<!-- MARKER FORMAT-SHEET="Head Minor Center-TNR" FSL="Project" --> <P ALIGN=CENTER>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>SIGNATURES </FONT></P>
<!-- MARKER FORMAT-SHEET="Para Indent Lv 0-TNR" FSL="Project" --> <P>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized. </FONT></P> <!-- MARKER FORMAT-SHEET="Head Left-TNR" -->
<P ALIGN=LEFT><FONT FACE="Times New Roman, Times, Serif" SIZE=2>Date:&nbsp;&nbsp;June 23, 2006, </FONT></P>
<!-- MARKER FORMAT-SHEET="Page Width End" FSL="Project" --> </TD> </TR> </TABLE> <BR>
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 <TR VALIGN=TOP> <TD WIDTH=40%><FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD> <TD WIDTH=10%>
<FONT FACE="Times New Roman, Times, Serif" SIZE=2></FONT></TD> <TD WIDTH=50%>
<FONT FACE="Times New Roman, Times, Serif"SIZE=2><B>4 KIDS ENTERTAINMENT, INC.</B><BR><BR> <BR>BY: <U><I>/s/ Bruce R. Foster </I></U><BR><BR> Bruce R.
Foster<BR>Executive Vice President, Chief Financial Officer</FONT></TD> </TR> </TABLE> <BR> </BODY> </HTML>
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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13
OR 15 (d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report
(Date of earliest event reported):
June 19, 2006
Commission file number 0-7843
4Kids Entertainment, Inc.
(Exact name of Registrant as
specified in its charter)
New York
(State or
other jurisdiction of
incorporation or organization)
13-2691380
(I.R.S.
Employer
Identification No.)
1414 Avenue of the Americas
New York, New York 10019
(212) 758-7666
(
Address, including zip code, and telephone number,
including area code,
of Registrant's principal executive offices)
Check the appropriate box below if
the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of
the following provisions:
¨
Written communications pursuant to Rule 425 under the
Securities Act (17 CFR 230.425)
¨
Soliciting material pursuant to Rule 14a-12 under the Exchange
Act (17 CFR 240.14a-12)
¨
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
¨
Pre-commencement
communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Item
1.01  Entry into a Material Definitive Agreement
On June 19, 2006, The Summit Media
Group, Inc. ("Summit"), a wholly owned subsidiary of 4Kids Entertainment, Inc.
("4Kids"), entered into a Settlement Agreement and Mutual General Release (the
"Settlement Agreement") with The Beacon Media Group L.L.C. ("Beacon"),
Sheldon Hirsch, Tom Horner and Paul Caldera, collectively (the "Beacon
Defendants") to settle the law suit filed by Summit in Supreme Court, New York County
against Beacon and the Beacon Defendants. Under the terms of the Settlement Agreement,
Beacon will make payments to Summit or provide media buying services to 4Kids totaling $2
million, over the next few years, in exchange for Summit discontinuing the lawsuit. As
part of the Settlement Agreement, Summit will be winding down its media buying business
and effective July 1, 2006, Summit will no longer serve as a media buying agency for third
parties. Beacon's payments to Summit will be secured by a security interest in
Beacon's assets and a pledge of certain membership interests in Beacon.
Item
8.01  Other Events
On June 23, 2006, the Company issued
a press release reporting the settlement of the lawsuit filed by Summit in Supreme Court,
New York County against Beacon and the Beacon Defendants. A copy of the press release is
attached hereto as Exhibit 99.2. As part of the Settlement Agreement, Summit will be
winding down its media buying business and effective July 1, 2006, Summit will no longer
serve as a media buying agency for third parties. In addition, Summit agreed not to
compete with Beacon in such business. Beacon's payments to Summit will be secured by
a security interest in Beacon's assets and a pledge of certain membership interests
in Beacon.
Summit's revenues were
$6,054,768, $4,117,091 and $3,884,819 in 2005, 2004 and 2003, respectively. Summit's
net income was $1,702,573, $539,920 and $512,303 in 2005, 2004 and 2003, respectively. For
the quarter ended March 31, 2006, Summit had revenue and a net loss of $541,223 and
($213,577), respectively. Beginning in the second quarter of 2006, Summit's business
will be accounted for as a discontinued operation on the 4Kids financial statements.
Item 9.01 Financial
Statements, Pro Forma Financial Information and Exhibits.
(c)
Exhibits
Exhibit
Description
99.1          
                       
 Settlement Agreement and Mutual General Release dated June 19, 2006
99.2          
                       
 Press release issued by 4Kids Entertainment, Inc. dated June 21, 2006
SIGNATURES
Pursuant to the
requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on
its behalf by the undersigned hereunto duly authorized.
Date:  June 23, 2006,
4 KIDS ENTERTAINMENT, INC.
BY:
/s/ Bruce R. Foster
Bruce R.
Foster
Executive Vice President, Chief Financial Officer