HAS - Hasbro: Acquisition Creates A Short Opportunity In Entertainment One Shares
Hasbro (HAS), a global designer and distributor of toys, games, television programming, film and licensed products, recently announced its acquisition of Entertainment One (ENTMF) ((ETO)) for GBP 5.60 per share. The proposed price implies a 31% premium to its 30-day volume-weighted average price ((VWAP)) and an ~21x P/E multiple.
I believe the acquisition will prove value-accretive to HAS in the medium term as the ETO acquisition opens up new markets for HAS, e.g., the pre-school market with brands such as Peppa Pig, PJ Masks and Ricky Zoom, as well as additional growth opportunities