Lionsgate Acquires eOne From Hasbro for $500 Million: Actional Takeaways.

August 03, 2023: Lionsgate Entertainment acquired Hasbro’s eOne film and TV studio for approximately $500 million in a significant deal. The transaction involves $375 million in cash, subject to adjustments and the assumption of production financing loans. The acquisition includes a content library of nearly 6,500 titles, as well as active productions for non-Hasbro-owned intellectual properties such as “The Rookie,” “Yellowjackets,” and “Naked and Afraid” franchises. Additionally, it covers the eOne unscripted business, including rights to certain Hasbro-based shows like “Play-Doh Squished.”

Actional Takeaways:

1. The acquisition of eOne strengthens Lionsgate’s scripted and unscripted television business while expanding its presence in Canada and the U.K.
2. With thousands of properties, the acquisition adds a world-class library to Lionsgate’s portfolio of assets.
3. The deal aligns with Hasbro’s strategic objective of focusing on more profitable brands.
4. Lionsgate CEO Jon Feltheimer expects the acquisition to be immediately accretive and enhance its position as one of the world’s leading independent content platforms.
5. Hasbro will utilize the proceeds from the sale to retire at least $400 million of floating-rate debt by the end of the year, which could lead to a stronger financial position.
6. Hasbro will continue prioritizing entertainment, developing and producing content based on its rich vault of owned brands, ensuring a continued focus on innovation and creative development.
7. The deal represents a significant milestone for Hasbro’s commitment to executing its Blueprint 2.0 strategy, emphasizing increased investment in priority brands and building a sustainable business model.
8. The acquisition offers an opportunity for Lionsgate to explore various entertainment possibilities, including the potential for a movie adaptation of the iconic board game “Monopoly.”

The acquisition of eOne by Lionsgate is expected to create new opportunities in the entertainment industry, fostering creativity and expanding content production capabilities. Both companies can play to their core strengths while enhancing their global reach and content offerings. Additionally, the deal positions Hasbro to focus on a more streamlined and profitable brand portfolio, opening doors to new partnerships and growth opportunities in the future.