Hasbro sells eOne TV for $500 Million but Bought for $4 Billion to Lionsgate
The American multinational conglomerate sells its TV and movie business for $500 million. By: Theng Min Yee
After paying $4 billion for Entertainment One (eOne) four years ago, Hasbro sells the business to Lionsgate in a $500 million deal. The anticipated transaction consists of $375 million in cash that is subjected to purchase price adjustments, and the assumption of production financing loans by Lionsgate.
The acquisition will grant Lionsgate access to eOne’s library of up to 6,500 titles, including Grey’s Anatomy, Yellowjackets and The Woman King. eOne’s unscripted business, which retains rights to Hasbro-based shows like Play-Doh and Squished, are also part of the transaction. Additionally, Lionsgate will possess film development rights to Hasbro’s Monopoly, based on the popular board game.
The board of directors at both companies have greenlighted the transaction, which is targeted to close by the end of the year.
Hasbro will utilise the proceeds from the deal to retire a minimum of $400 million of floating debt rate by year’s end, as well as for other corporate purposes.
Having purchased eOne in 2019 for about $4 billion, Hasbro was interested in the company’s preschool brands, namely Peppa Pig and PJ Masks. In November, the company announced that it was looking to sell the part of eOne’s television and film business that did not directly support its branded entertainment strategy. Nonetheless, Hasbro will still have access to Peppa Pig and PJ Masks, as it still retains ownership of the family brands division.
“This sale fully aligns with our strategy, and we are pleased to bring the process to a successful close,” said Hasbro CEO Chris Cocks. “Lionsgate’s management team is experienced in entertainment and adept at driving value, and we’re glad to have found such a good home for our eOne film & TV business,” he added.
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