Lionsgate to buy eOne studio from Hasbro for $500 million
Lionsgate will buy film and TV studio Entertainment One from Hasbro for around $500 million, the companies announced Thursday morning.
Why it matters: Lionsgate is set to spin off its own film and TV studio into a separate company, and now adds to that a 6,500-plus title content library.
Details: The purchase is comprised of $375 million in cash, subject to additional purchase price adjustments, and the assumption of production financing loans
- The deal does not include top family brands like Peppa Pig and PJ Masks, which have been folded into Hasbro's wider merchandising operations.
Catch up quick: Hasbro purchased eOne for $4 billion in 2019 as part of former CEO Brian Goldner's plan to turn the toymaker into a bigger media player.
- Goldner died in 2021 following a lengthy battle with prostate cancer. His successor Chris Cocks then launched a review in early 2022.
- Around that same time, Hasbro came under fire from a pair of activist investors who criticized the eOne purchase and called for the company to offload it.
- In 2021, Hasbro sold eOne's music business to private equity firm Blackstone for $385 million.
The bottom line: Lionsgate's studio spinout plans have drawn M&A chatter about the future of its film and TV assets, which include more than 18,000 titles. Adding eOne only figures to further that feeling.