“The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio,” says Brian Goldner, Chairman of Hasbro and CEO.
Toy maker Hasbro has acquired Canadian Studio – Entertainment One, as part of a $4 billion all cash transaction.
Hasbro has been granted Peppa Pig and PJ Maskskids, along with other top priorities such as Nickelodeon’s Ricky Zoom. Under the terms and conditions of the new deal, eOne shareholders will receive $6.80 in cash for each common share which Hasbro has declared represents a 31% premium to its 30-day average price.
Hasbro will be using debt financing and a $1-$1.25 billion equity offering to fund the takeover of eOne – which trades on the London Stock Exchange.
Brian Goldner, Chairman of Hasbro and CEO has stated: “The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling, which will now include Hasbro’s IP.”
eOne has been the subject of takeover speculation in recent years and has recently shaped its business model around such factors as Designated Supervisor producer Mark Gordon, and eOne Television, family product, and partnering with Spielberg’s Amblin Partners, amongst other aspects.
In 2016, the Canadian company rejected a takeover bid from ITV, worth $1.3 billion.
eOne has an already substantial TV library, along with theatrical distribution across Canada, the United Kingdom, Benelux and Australia.
Hasbro has forecasted in-sourcing and cost synergies of around $130 million by 2022. In part by bringing eOne’s toy business in-house and moving underutilized Hasbro content to be developed by its Canadian-based partner.
On an analyst call, Goldner was asked about the existing agreement Hasbro has with Paramount Pictures to produce and distribute content based on Hasbro brands and original concepts.
It was explained that the partnership would continue, and eOne would be used to develop non-core IP, that is not part of the long-term deal that has Paramount and Hasbro jointly financing projects and the Hollywood studio distributing content worldwide.
Paramount and Hasbro also collaborate on TV projects.
Goldner stated: “Our partnership with Paramount is fantastic. What we see is an expansion of our opportunity with Paramount but also to develop IP that isn’t part of our priority productions.”
Peppa Pig and PJ Masks already have licensing and merchandising partners, and Goldner has explained that Hasbro would have the all clear to bring these preschool brands in house, and fully exploit them in the market by as early as 2021.
Hasbro have declared: “Top eOne executives have agreed to join the Hasbro team.”
It has not been uncovered who the executives are as of yet.
Already known for its toy-film properties, such as Transformers and GI Joe, Hasbro has touted the acquisition for accelerating the company’s Brand Blueprint Strategy.
Darren Throop, CEO at eOne, declared: “Hasbro’s portfolio of integrated toy, game and consumer products will further fuel the tremendous success we’ve achieved at eOne.
Along with our leadership team, I look forward to working with Hasbro on our joint growth and success for many years to come,”
Hasbro’s proposed deal for eOne has been unanimously approved by the respective board of directors of both companies.
Subject to eOne shareholders and regulatory approvals, Hasbro expects its takeover deal to close by the end of 2019, a hugely exciting time for the company and its expansions.
Source: The Hollywood Reporter