The jokes about Hasbro owning Death Row Records have piped down over the past two years, but now they’re about to be rendered null.
As Hasbro Inc. prepares to reveal its Q1 earnings tomorrow before the bell, the toy and entertainment company entered into a definitive agreement to sell Entertainment One Music (eOne Music) for $385 million in cash. Hasbro acquired eOne Music and all of its labels and catalog operations when it purchased eOne in 2019.
Pending the customary regulatory approvals and closing conditions, eOne Music will be offloaded to Blackstone, an investment group that owns SESAC — a music performing rights organization — and companies including Servepro and Ancestry. Hasbro says it plans to use the cash raised by the sale to “accelerate deleveraging and other general corporate purposes.”
“This transaction will ensure that eOne Music is well-positioned to unlock great opportunities for its many talented artists and partners, as Hasbro continues to focus on the core strategic elements of our brand blueprint to further strengthen our position as a purpose‐led play and entertainment company, says Hasbro Chairman and CEO Brian Goldner. “On behalf of the board and Hasbro management, I want to recognize the strong leadership of Chris Taylor and the entire eOne Music organization.”
Taylor will continue to serve as global president of eOne Music at the closing of the sale, which is expected to close in the third quarter.
The studio and distribution arms of eOne are beginning to pay off for Hasbro as it continues to develop its intellectual properties (IP) into film and TV projects. Additionally, the acquisition of eOne brought top preschool franchises, including Peppa Pig, PJ Masks, and Ricky Zoom into the Hasbro stable.