Hasbro Puts EOne Film, TV Business Up For Sale
Hasbro said its board has authorized a sale process for the part of its eOne TV and film business not directly supporting its branded entertainment strategy following a review of the business initiated by new CEO Chris Cocks.
The company has retained J.P. Morgan and Centerview Partners to move ahead with the sale process for a 6,500+ content library; the non-Hasbro branded film and scripted TV business which produces and finances content like The Woman King, Yellowjackets and The Rookie franchise; Hasbro’s interest in Entertainment One Canada Limited’s Canadian film and TV business; and Hasbro’s unscripted division, which includes the Naked & Afraid franchise.
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Cocks said Hasbro had “received inbound interest from several parties for the part of the eOne television and film business that while valuable is not core to our go-forward strategy.” Hasbro will maintain the capability to develop and produce animation, digital shorts, scripted TV and theatrical films for audiences related to core Hasbro IP.
Former CEO Brian Goldner, who spearheaded the company’s push into film and TV with the acquisition of eOne in 2019, died of cancer a year ago.
The announcement today said Hasbro plans to significantly increase strategic investment in key brands with a focus on gaming, direct to consumer, franchise brands and licensing.
Priority brands for investment include Peppa Pig, Transformers, Dungeons & Dragons, Magic: The Gathering, My Little Pony, Power Rangers, Play-Doh and board games including Monopoly and Clue.
The company said it plans to maintain “significant development, production and financing capabilities to support its core brands across film, TV, animation and digital shorts.” These projects will span Hasbro’s brands and include the development of new IP such as the recently announced Kiya and the Kimoja Heroes that is scheduled to premiere on Disney Junior and Disney+ in 2023.
“Following our recent Investor Day where we introduced our new branded entertainment strategy, Blueprint 2.0, we received inbound interest from several parties for the part of the eOne television and film business that while valuable is not core to our go-forward strategy. This interest informed our decision to explore a sale process,” said Cocks.
“The acquisition of eOne delivered fantastic talent, top tier production and deal making capability and beloved brands with strong toyetic potential including Peppa Pig. We will retain these terrific capabilities while exploring the best way to maximize the value of the eOne TV & Film Business for the benefit of our shareholders.”
Hasbro expects the process will take several months and that there’s no assurance of a sale.
Hasbro’s entertainment team will continue to operate under the eOne production mark.
Pawtucket, Rhode Island-based Hasbro acquired indie studio eOne in an all-cash transaction valued at $4 billion with plans to merge eOne preschool brands like Peppa Pig and PJ Masks with Hasbro’s TV and film expertise, which had taken a leap through franchises like Transformers. Hasbro sold eOne’s music company, which owned Death Row Records, for $385 million.
Early this year, activist investor Alta Fox Capital Management, citing a lagging stock, began agitating for change at Hasbro including a spinoff its Wizards of the Coast playing card and digital gaming subsidiary – the division behind Dungeons & Dragons. It pushed Hasbro to add five directors to its board, a proxy fight Alta lost at the company’s annual meeting last summer. But reports have been swirling since August that Hasbro was eyeing a sale or restructuring of eOne assets.
Cocks was formerly president of Wizards of the Coast.
Hasbro shares were up 1.3% at $56.71 in a down market Thursday.
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