Lionsgate, a leading global entertainment company, recently announced its plans to acquire Hasbro’s Entertainment One (eOne) film and TV business for $500 million. This deal, subject to regulatory approvals, includes a cash payment of $375 million and the assumption of production financing loans. The transaction is expected to close by the end of 2023.
The acquisition covers a vast content library consisting of nearly 6,500 titles, including popular franchises such as “The Rookie,” “Yellowjackets,” and “Naked and Afraid.” It also includes the eOne unscripted business and Hasbro’s interest in the Canadian film and TV operations of Entertainment One Canada Limited.
This deal comes after Hasbro announced its decision to sell eOne in November 2022. J.P. Morgan and Centerview Partners were appointed to assist with the sale process. Hasbro had acquired eOne, a Toronto-based studio, in 2019 to leverage its entertainment assets.
The sales process gained momentum when eOne founder Darren Throop announced his departure from the company at the end of 2022. Throop sought financing from CVC Capital Partners, a Luxembourg-based private equity firm, to potentially repurchase the film and TV production and distribution unit from Hasbro.
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eOne boasts an extensive film and TV library with around 6,500 titles. It also has a branded film and scripted TV business that produces and finances content for franchises like “Dungeons & Dragons: Honor Among Thieves,” “The Woman King,” “Yellowjackets,” and “The Rookie.”
Hasbro’s acquisition of eOne in 2019 was part of a $4 billion all-cash transaction aimed at expanding the toy maker’s influence as a media contender. However, the pandemic disrupted this media strategy due to Hollywood production shutdowns and delays in content deliveries. Hasbro’s CEO, Chris Cocks, has since shifted the company’s focus towards becoming a digital gaming powerhouse.
With the sale of eOne, Hasbro now aims to reinvest in fewer but more profitable properties while collaborating with outside partners to reduce costs and minimize risks. Cocks expressed satisfaction with the completion of the sale, stating that Lionsgate’s experienced management team and proven ability to drive value make them an ideal home for the eOne film and TV business.
Lionsgate, a major player in the entertainment industry, was advised by Jefferies & Co., Ernst & Young, and Sheppard Mullin during the transaction. Meanwhile, J.P. Morgan and Centerview Partners served as lead financial advisors to Hasbro. Legal counsel for Hasbro is provided by Cravath, Swaine & Moore LLP, Mayer Brown International LLP, and Stikeman Elliott LLP, with Osler, Hoskin & Harcourt LLP acting as legal counsel to Entertainment One Canada.
The acquisition of eOne by Lionsgate is anticipated to strengthen the former’s position in the global entertainment market. Both companies are committed to delivering high-quality content to audiences worldwide and continually expanding their offerings. This strategic move aligns with Lionsgate’s growth plans and allows Hasbro to refocus its resources on strategic initiatives in line with its long-term goals.
In conclusion, the Lionsgate acquisition of Hasbro’s Entertainment One film and TV business marks a significant development in the entertainment industry. The deal encompasses a vast content library, active productions, and the unscripted business of eOne. With the transaction set to close by the end of 2023, both Lionsgate and Hasbro are optimistic about the future opportunities and synergies this partnership will bring.
