Hasbro’s sale of eOne’s film and TV business is set to close by the end of the year, allowing the company to refocus on its core mission and drive toy and game sales.
Hasbro’s sale of eOne’s film and TV business is on track to close by the end of the year, after receiving the necessary regulatory approvals. Lionsgate is set to buy the assets for approximately $500 million, which includes a content library of nearly 6,500 titles and active productions for non-Hasbro owned intellectual properties such as The Rookie, Yellowjackets, and Naked and Afraid franchises. The sale will also include the eOne unscripted business.
The toy maker had acquired eOne, known for properties like Peppa Pig and PJ Masks, for about $4 billion. The sale of eOne’s film and TV business will simplify Hasbro’s operating model and allow the company to refocus on its core mission. Hasbro CEO Chris Cocks stated that the company’s entertainment efforts will be franchise-led and asset-light, with a focus on driving toy and game sales and support from content partners.
Despite the sale, Hasbro still has more than 30 projects in development, including collaborations with Paramount for Transformers One, an animated Magic: The Gathering series with Netflix, and a new YouTube series. However, the company’s entertainment segment has experienced a decline in revenue, falling 42 percent in the third quarter due to lower film and TV revenue resulting from writers and actors strikes.
Looking ahead, Hasbro expects revenue declines of 25 to 30 percent in 2023, including the impact of the strikes on production deliveries in the second half of the year. In the third quarter of 2023, the company reported revenue of $122.9 million for the entertainment segment, compared to $211.6 million in the previous year. The segment’s operating loss of $801.4 million includes $473.0 million related to the planned sale of the eOne Film and TV business.
The eOne film and TV assets to be sold have generated approximately $400 million in revenue year to date, a decrease of around 20 percent compared to the previous year. Hasbro anticipates that full-year earnings will be breakeven to a modest loss. Overall, the company reported $1.5 billion in net revenue, a 10 percent decline year-over-year, and an operating loss of $170 million, compared to a profit of $194 million in the previous year.
While the company’s Wizard of the Coast and digital gaming segment showed strength, it was not enough to offset the softness in the entertainment and consumer products segment. Despite the challenges, Hasbro remains committed to its core mission and aims to drive sales through its toy and game offerings, supported by its world-class content partners.
In conclusion, Hasbro’s sale of eOne’s film and TV business is set to close by the end of the year, allowing the company to simplify its operating model and refocus on its core mission. While the entertainment segment has experienced declines in revenue, Hasbro remains optimistic about its future, with a strong lineup of projects in development and a commitment to driving toy and game sales.