- Hasbro announced it is buying Entertainment One (eOne) in an all-cash transaction valued at $4 billion. eOne owns brands like Peppa Pig, PJ Masks, and Death Row Records
Hasbro and Entertainment One (eOne) have announced a deal where the toy and board game company is acquiring the independent studio for an all-cash transaction valued at $4 billion. This combination will combine eOne’s preschool brands like Peppa Pig and PJ Masks with Hasbro’s TV and film franchises including Transformers.
eOne is known as the company that makes the Peppa Pig and PJ Masks cartoons. And with the acquisition of eOne, Hasbro is now also the owner of the Death Row Records, according to Rolling Stone. eOne bought the whole catalog of Death Row Records in 2013 for $280 million — which is 7 years after the music label filed for bankruptcy. And some of the well-known artists that used to be signed to Death Row Records included 2Pac, Dr. Dre, Snoop Dogg, MC Hammer, Nate Dogg, Pete Pablo, Crooked I, and Daz Dillinger.
As part of the deal, shareholders will receive $6.86 in cash for each common share of eOne — which is a 31% premium to eOne’s 30-day volume-weighted average price as of August 22.
According to Deadline, Hasbro CFO Deborah Thomas pointed out that the companies have identified around $130 million in cost synergies by 2022. These savings can be achieved through shifts in bringing licensing activities in-house. And Hasbro CEO Brian Goldner added that the $130 million is in cost savings only, not revenue opportunities.
Many of the top eOne executives have agreed to join Hasbro. And eOne’s Canadian TV and film operations will continue as a Canadian-controlled business within the combined entity.
“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,” Goldner commented. “In addition, Hasbro will leverage eOne’s immersive entertainment capabilities to bring our portfolio of brands that have appeal to gamers, fans and families to all screens globally and realize full franchise economics across our blueprint strategy for shareholders. We are excited to welcome eOne’s talented employees from around the world into the Hasbro family.”
“On behalf of the board of eOne, I am very pleased by this exciting development, which is a testament to eOne management’s vision, leadership, and solid execution. This transaction creates significant, immediate value for our shareholders as it recognizes the strength of our future-facing business model,” noted Allan Leighton, a non-executive director and the chairman of eOne.
And Hasbro is expecting to suspend its current buyback program as part of the purchase — which was approved by both boards.
