Hasbro is selling eOne film and TV Business to Lionsgate

Hasbro, Inc. has announced that a final agreement has been reached to sell its eOne film and TV business to Lionsgate. The total consideration is approximately $500 million, which consists of $375 million in cash, subject to certain purchase price adjustments, and the assumption of production financing credits by Lionsgate. The transaction has been approved by the boards of directors of both companies and remains subject to customary closing conditions, including receipt of regulatory approvals. Hasbro will use the proceeds to repay at least $400 million of floating-rate debt by year-end and for other general corporate purposes. The transaction is expected to close by the end of 2023.

Sale includes nearly 6.500 titles and more

The sale includes a team of employees, a content library of nearly 6,500 titles, active productions for non-Hasbro-owned intellectual property such as The Rookie, Yellowjackets and Naked and Afraid franchises, and the eOne Unscripted business, which includes rights to certain Hasbro-based shows such as Play-Doh Squished. The eOne Film and TV business being sold also includes Hasbro's interest in Entertainment One Canada Limited's Canadian film and TV business, and the transaction has also been approved by Entertainment One Canada Limited's board of directors.

“This sale fully aligns with our strategy, and we are pleased to bring the process to a successful close,” said Hasbro CEO Chris Cocks. “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.”

Following the Blueprint 2.0 strategy

The announcement marks an important milestone in Hasbro's effort to implement its Blueprint 2.0 strategy, which at its core aims to significantly increase investment in Hasbro's key brands. In addition to Hasbro's animation projects, which include Peppa Pig, Transformers: EarthSpark and My Little Pony: Tell Your Tale, the company will retain a focused team of creative development and business affairs professionals to oversee the more than 30 Hasbro-based projects in development and work with top studios and distribution platforms in Hollywood, including the ongoing development of the Transformers and GI Joe franchises, Play-Doh, D&D Magic:The Gathering and Hasbro's board game portfolio.

Source:www.investor.hasbro.com