Following industry rumblings that pegged Lionsgate as the frontrunner to purchase Hasbro‘s eOne Film and TV business, the deal has been approved.
Ahead of today’s second quarter earnings call, Hasbro revealed that both companies’ Boards of Directors signed off on the deal which offloads the eOne assets for approximately $500 million. The transaction is set to close by the end of the year. The sale brings a tumultuous period to a close after Hasbro acquired — and perhaps vastly overpaid for — eOne at the end of 2019 in a $4 billion transaction. At the time, the combined forces of Hasbro and eOne were celebrated in several spots, including the cover of the February 2020 issue of The Toy Book, with a “We Are One” campaign.
This sale fully aligns with our strategy, and we are pleased to bring the process to a successful close, 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. We look forward to partnering with them, especially on a movie adaptation of Monopoly.”
The sale of certain film and TV assets to Lionsgate follows a 2021 transaction in which Hasbro sold eOne Music to Blackstone for $385 million. The deal includes eOne’s staff, a library of nearly 6,500 titles, active productions for non-Hasbro owned intellectual property (IP) including The Rookie, Yellowjackets, and Naked and Afraid, and the eOne unscripted business, which includes rights for certain Hasbro-based shows like Play-Doh Squished. The sale also includes Hasbro’s interest in the Canadian film & TV operations of Entertainment One Canada Ltd.
Hasbro says that it will retain a team to continue development on more than 30 projects based on its IP by working with various studios and distribution platforms throughout Hollywood. Projects in development include titles based in G.I. Joe, Transformers, Dungeons & Dragons, Magic: The Gathering, and Play-Doh, among others. On the animation side of the business, Hasbro will continue efforts including Peppa Pig, Transformers: EarthSpark, and My Little Pony: Tell Your Tale.
“Entertainment remains a priority for Hasbro. Hasbro will continue to develop and produce entertainment based on the rich vault of Hasbro-owned brands,” Cocks adds. “We will also bring to life new original ideas designed to fuel all areas of Hasbro’s blueprint including toys, publishing, gaming, licensed consumer products, and location-based entertainment. As part of the sale, we expect to move to an asset-light model for future live-action entertainment, relying on licensing and partnerships with select co-productions.”
The aforementioned Monopoly movie with Lionsgate was first announced in 2019 with Kevin Hart attached to star.
