Hasbro Acquires Entertainment One in $4 Billion Deal

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In a deal that feels like it came out of nowhere, Hasbro has acquired Entertainment One in a $4 billion deal. The all-cash transaction will bring brands like Peppa Pig and PJ Masks to Hasbro as well as expand Hasbro’s television and film abilities. Hasbro has been focused on expanding their properties to film and a “Hasbro Universe” has long been gestating.

eOne shareholders will receive $6.86 in cash for each share. In the announcement, Hasbro CFO said they have identified $130 million in “cost synergies” by 2022. That’s savings and not revenue and an example would be bringing licensing in-house. PJ Masks toys are made by Just Play currently.

Top eOne executives will join the Hasbro team and eOne’s Canadian TV and film operation will continue to be a distinct Canadian-controlled business.

eOne is a Canadian company founded in 1973. Its focus is in music, television, and film and has investments in Amblin Partners and acquired a 70% stake in British animation studio Astley Baker Davies (Peppa Pig) in 2015. in 2018, eOne acquire the remaining 49% of The Mark Gordon Company, it acquired a 51% stake in 2015.

Notable productions include Hung, Rookie Blue, Haven, Designated Survivor, Grey’s Anatomy, and Criminal Minds. It also has a multi-year international output deal with AMC and Sundance that involves such shows as Halt and Catch Fire, The Walking Dead, and Fear the Walking Dead.

British television broadcaster ITV plc attempted to acquire eOne for $1.3 billion in 2016 but the offer was rejected due to it being “fundamentally undervalued.”

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