Hasbro, the maker of popular toys and games such as Monopoly, Transformers and My Little Pony, has announced that it has agreed to sell its eOne film and TV studio to Lionsgate Entertainment, a leading media company, for about $500 million.
The deal, which includes a library of nearly 6,500 titles such as “Yellowjackets”, “The Rookie” and “The Woman King”, has been approved by both companies’ boards and is expected to close by the end of 2023.
Hasbro said it would use the proceeds from the transaction to retire at least $400 million in debt by the end of the year, and for other corporate purposes.
Hasbro acquired eOne in 2019 for $4 billion, hoping to leverage its content and distribution capabilities to boost its entertainment strategy2. However, the pandemic and the slowdown in the toy industry forced Hasbro to cut jobs and restructure its business.
Last November, Hasbro said it was looking to sell a part of eOne that did not support its branded entertainment strategy2. Hasbro will retain ownership of the family brands division, which includes children’s programme “Peppa Pig”.
Lionsgate, which owns franchises such as “The Hunger Games” and “John Wick”, said the acquisition will enhance its content portfolio and expand its operations in the U.K. and Canada, where it has recently launched production partnerships with BBC Studios, Channel Four, the CBC, Rogers’ CityTV and Bell Media.