Hasbro to Acquire Entertainment One Adding Brands and Expanding Storytelling Through Global Entertainment

by Jay Cochran
August 23, 2019
- Accelerates Hasbro’s Brand Blueprint strategy by adding eOne’s family brands, exceptional, proven TV and film expertise and veteran executive leadership

- Adds beloved global preschool brands, Peppa Pig and PJ Masks, as well as a slate of additional brands in development, including newly introduced - Ricky Zoom, to Hasbro’s robust brand portfolio

- Dramatically enhances storytelling capabilities and franchise economics in TV, film and other mediums to strengthen Hasbro’s brands

- Improves Hasbro’s growth outlook and enhances long-term profitability through in-sourcing and cost synergies as well as future revenue growth opportunities


Hasbro and Entertainment One Ltd. (LSE: ETO) (eOne) announced that they have entered into a definitive agreement under which Hasbro will acquire eOne in an all-cash transaction valued at approximately £3.3 billion or US$4.0 billion. Under the terms of the agreement, eOne shareholders will receive £5.60 in cash for each common share of eOne, which represents a 31% premium to eOne’s 30-day volume weighted average price (VWAP) as of August 22, 2019.

“On behalf of the board of eOne, I am very pleased by this exciting development, which is a testament to eOne management’s vision, leadership and solid execution. This transaction creates significant, immediate value for our shareholders as it recognizes the strength of our future-facing business model,” said Allan Leighton, eOne’s chairman of the board.

“Hasbro’s portfolio of integrated toy, game and consumer products, will further fuel the tremendous success we’ve achieved at eOne,” said Darren Throop, chief executive officer of eOne. “There’s a strong cultural fit between our two companies; eOne’s stated mission is to unlock the power and value of creativity which aligns with Hasbro’s corporate objectives. eOne teams will continue to do what they do best, bolstered by the access to Hasbro’s extensive portfolio of richly creative IP and merchandising strength. In addition, the resulting expanded Hasbro presence in Canada through eOne’s deep roots will bring world class talent and production capabilities to Hasbro. Along with our leadership team, I look forward to working with Hasbro on our joint growth and success for many years to come.”

“By combining two profitable and financially disciplined companies we expect to unlock value in the short- and long-term for our stakeholders,” said Deborah Thomas, Hasbro’s chief financial officer. “eOne’s brands and TV and film expertise, together with Hasbro’s brands, toy and game innovation and licensing capabilities, positions us to more quickly drive revenue and profit over the medium-term. We remain committed to maintaining an investment grade rating and returning to our gross Debt to EBITDA target of 2.00 to 2.50X.”

The acquisition will advance Hasbro’s position as a leading global play and entertainment company, adding beloved, global preschool brands with proven success and strong financial returns across platforms to Hasbro’s robust portfolio. eOne’s capabilities to bring high-quality content across platforms will strengthen Hasbro’s end-to-end ability to monetize and bring to market its IP in increasingly attractive new formats, including over-the-top (OTT) and premium platforms, music, location-based entertainment, AR and VR.

Comments...

Last 10 comments - ( Read All Posts )
80sboy4 - 2019-08-28 @ 7:30 pm

Hasbro maybe bitting off a little more then they can chew here, not sure what the game plan is, perhaps they just want to aquire as many properties as possible in order to compete with Disney?

K9K1N6 - 2019-08-26 @ 6:00 am
8 hours ago, Belmont13 said:

Looks like Hasbro wants to be the next Disney.

Thus Disney wanting to buy Hasbro at some point if i recall, so yeh.

Belmont13 - 2019-08-25 @ 9:12 pm

Looks like Hasbro wants to be the next Disney.

JHS1988 - 2019-08-25 @ 11:11 am

I have talked to some many of the parents of the kids in my kids pre-k class(there are so many birthday parties) and we complain about how annoying Peppa Pig is, but the show has been on for years and still seems very popular. Iactually bought a Peppa Pig playset yesterday. PJ Mask and Tractor Tom also are big with little ones.Seems like a smart move to me

Satam - 2019-08-25 @ 3:05 am

Press release leaves out that along with Pepa Pig and PJ Masks, Hasbro also now owns Death Row records.

sonic360 - 2019-08-25 @ 3:03 am

Hasbro keeps buying properties and doing nothing with them.

Where's G.I. Joe, or M.A.S.K. or Dungeons and Dragons ?

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