Hasbro’s eOne TV and Movie Business Sold for $500M: Unveiling a Lucrative Deal

**Hasbro Sells eOne Television and Movie Business to Lionsgate in $500 Million Deal**

Toy company Hasbro is selling its eOne television and movie business to Lionsgate in a deal worth approximately $500 million. The agreement includes $375 million in cash and the assumption of production financing loans. This move comes four years after Hasbro acquired Entertainment One Ltd. for $4 billion. The acquisition of eOne will give Lionsgate access to a library of almost 6,500 titles, including popular shows like “Grey’s Anatomy” and “Yellowjackets.”

**Expansion Opportunities for Lionsgate in the UK and Canada**

As part of the deal, Lionsgate will also receive film development rights to Hasbro’s Monopoly, based on the beloved board game. Additionally, Lionsgate will have the opportunity to scale its operations in the UK and Canada, where the company has recently launched production partnerships with BBC Studios, Channel Four, the CBC, Rogers’ CityTV, and Bell Media.

**Hasbro’s Continued Ownership of Family Brands Division**

While Hasbro initially acquired eOne for its preschool brands like Peppa Pig and PJ Masks, the company has made the decision to sell off the part of eOne’s television and film business that does not directly support its branded entertainment strategy. However, Hasbro will retain ownership of the family brands division, which includes Peppa Pig and PJ Masks.

**Approval and Expected Timeline for the Deal**

The transaction has been approved by the boards of both Hasbro and Lionsgate and is expected to close by the end of the year. Hasbro has announced that it plans to use the proceeds from the deal to retire at least $400 million of floating rate debt before the end of the year.

**Second Quarter Financial Results and Future Outlook**

On the same day as the announcement of the deal, Hasbro also reported its financial results for the second quarter. The company experienced a loss of $235 million, or $1.69 per share, in the period, compared to the previous year’s profit. Adjusted earnings, excluding asset impairment costs and amortization costs, were 49 cents per share, falling short of analysts’ expectations of 58 cents per share. Despite the loss, Hasbro’s revenue for the quarter reached $1.21 billion, exceeding Wall Street’s estimate of $1.11 billion. In the second quarter of the previous year, Hasbro reported an adjusted profit of $1.15 per share on revenue of $1.34 billion.

**Conclusion**

Hasbro’s decision to sell its eOne television and movie business to Lionsgate for $500 million marks a strategic move for both companies. Lionsgate will gain access to a vast library of titles and the film development rights to Hasbro’s Monopoly, while Hasbro can focus on its branded entertainment strategy and retain ownership of its family brands division. The deal is expected to close by the end of the year, and Hasbro plans to use the proceeds to retire a significant amount of debt. Despite the financial loss in the second quarter, Hasbro’s revenue exceeded expectations.