HAS - Hasbro to sell eOne film TV business to Lionsgate in ~$500M deal
2023-08-03 07:28:28 ET
Hasbro ( NASDAQ: HAS ) is selling its eOne film and TV business to Lionsgate in a ~$500M transaction.
The deal consists of $375M in cash, subject to certain purchase price adjustments, and the assumption by Lionsgate of production financing loans.
Hasbro will use the proceeds to retire a minimum of $400M of floating rate debt by the end of the year, and for other general corporate purposes.
The deal has been approved by the boards of both companies and is subject to conditions, including regulatory approvals.
The transaction is expected to close by the end of 2023.
The sale will include employees, content library of nearly 6,500 titles, active productions for non-Hasbro owned IP like, The Rookie, Yellowjackets and Naked and Afraid franchises, and the eOne unscripted business, which will include rights for certain Hasbro-based shows like Play-Doh Squished.
The company said that eOne film and TV business being sold also includes Hasbro's interest in the Canadian film & TV operations of Entertainment One Canada, and the transaction has also been approved by Entertainment One Canada Limited's board.
The company added that the transaction completes a sale process in connection with Hasbro's strategic review and represents a milestone in executing its Blueprint 2.0 strategy, aimed at increasing investment in Hasbro's priority brands.
"Entertainment remains a priority for Hasbro. Hasbro will continue to develop and produce entertainment based on the rich vault of Hasbro-owned brands," said Hasbro CEO Chris Cocks.
HAS +2.56% to $66.02 premarket Aug. 3
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Hasbro to sell eOne film, TV business to Lionsgate in ~$500M deal