Hasbro Pivoting To “Asset-Lite” Entertainment Model Following eOne Sale

Hasbro will move to an “asset-lite model for future live action entertainment” following the $500M eOne sale, according to CEO Chris Cocks.

Speaking as the toy giant unveiled the eOne deal plus Q2 earnings, Cocks said that, going forwards, Hasbro will rely on licensing and partnerships with select co-production partners. He cited the likes of the upcoming Transformers One animation and the Dungeons & Dragons TV series as examples, both of which are being made with Paramount.

Deadline revealed Lionsgate was in pole position to buy on-the-block Woman King studio eOne several weeks ago and confirmation came early this morning.

Related Stories

Breaking News

Hasbro Confirms Sale Of eOne To Lionsgate For $500M

Mergers and Acquisitions

Lionsgate Closing In On eOne Acquisition As Hasbro Q2 Earnings Call Nears

Hasbro acquired eOne in 2019 for $4B but sold the studio for just $500M, although it keeps hold of around 15% – the lucrative family brands division that houses staples such as Peppa Pig and PJ Masks. Around 20% of eOne’s film and TV staff have been impacted by layoffs over the past few months.

The sale will be used to pay down a minimum $400M in floating rate debt, according to Hasbro, and Cocks said the move will “give us greater focus and financial flexibility moving forward.”

Hasbro revenues fell by 10% to $1.2B for the quarter, while adjusted operating profit nearly halved to $136M.

Elaborating on the eOne sale, Cocks said “necessary choices are being taken to right-size our entertainment footprint.”

“Hasbro Entertainment will have a new marquee mission to develop, finance and produce entertainment based on the rich vault of Hasbro-owned brands,” he added. “While the next six months will lead to entertainment headwinds, we will emerge a more profitable business.”

The outlook for entertainment over the coming months has been downgraded by Hasbro slightly, in part due to the Hollywood strikes, the company said.

Must Read Stories

WB Q2 Results Hit By ‘The Flash’, Soft Ad Climate; Studio Says Strikes Have Saved $100M+

‘Days Of Our Lives’ Cast Calls For Change As More Details Emerge Around Co-EP Albert Alarr

Ted Hope On Strikes, Studios & Indie Biz; SAG-AFTRA Election; Picketers Latest

Lizzo Responds To “Outrageous” Sexual Harassment & Discrimination Allegations

Read More About:

Source: Read Full Article