Toy and game company Hasbro announced that it has reached a definitive agreement to sell its Entertainment One film and TV business to Lionsgate for approximately US$500 million, consisting of US$375 million in cash, subject to certain purchase price adjustments, and the assumption by Lionsgate of production financing loans. The transaction has been approved by both companies’ Boards of Directors and remains subject to customary closing conditions, including the receipt of regulatory approvals.
The sale will include the team of employees, a content library of nearly 6.500 titles, active productions for non-Hasbro owned IP like “The Rookie,” “Yellowjackets” and “Naked and Afraid” franchises, and the eOne unscripted business, which will include rights for certain Hasbro-based shows like “Play-Doh Squished.” The eOne film and TV business being sold also includes Hasbro’s interest in the Canadian film & TV operations of Entertainment One Canada Limited.
“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 are 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,’” said Chris Cocks, CEO of Hasbro.
“Entertainment remains a priority for Hasbro. Hasbro will continue to develop and produce entertainment based on the rich vault of Hasbro-owned brands. 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-lite model for future live action entertainment, relying on licensing and partnerships with select co-productions,” Cocks continued.
In November, Hasbro had announced that it was putting eOne up for sale, and retained J.P. Morgan and Centerview Partners to assist with the sale process. The toy and game company completed its acquisition of Entertainment One in 2019 in a US$3.8 billion all-cash deal.