Hasbro has confirmed the sale of its Entertainment One (eOne) film and TV business to Lionsgate, for $500m.
The sale, which had been anticipated over recent months, consists of $375m cash subject to purchase price adjustments; and the assumption by Lionsgate of production financing loans.
The boards of directors at both companies have approved the transaction, which remains subject to customary closing conditions, including the receipt of regulatory approvals. The sale is expected to close by the end of 2023.
Hasbro and Lionsgate will move ahead with a long-gestating film adaptation of the board game Monopoly, according to Hasbro CEO Chris Cocks.
Hasbro will use the proceeds of the sale to retire a minimum of $400m of floating debt rate by the end of the year; and for other corporate purposes.
Included in the transaction are eOne’s roster of staff, its 6,500-strong library, and active productions for non-Hasbro IP including Yellowjackets, The Rookie and Naked And Afraid franchises.
It will also include the eOne unscripted business, which will retain rights for Hasbro-based shows like Play-Doh Squished. The business sale also includes Hasbro’s interest in the Canadian film and TV operations of Entertainment One Canada Ltd, which has approved the transaction.
“This sale fully aligns with our strategy, and we are pleased to bring the process to a successful close,” said Hasbro CEO Chris Cocks. “Lionsgate’s management team is experienced in entertainment and adept at driving value, and we’re glad to have found such a good home for our eOne film & TV business.”
Cocks added that Hasbro will continue to develop entertainment based on its brands; but that it expects to move to an “asset-lite model for future live-action entertainment, relying on licensing and partnerships with select co-productions.”
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