{"id":133831,"date":"2023-08-03T14:59:11","date_gmt":"2023-08-03T14:59:11","guid":{"rendered":"https:\/\/fin2me.com\/?p=133831"},"modified":"2023-08-03T14:59:11","modified_gmt":"2023-08-03T14:59:11","slug":"hasbro-pivoting-to-asset-lite-entertainment-model-following-eone-sale","status":"publish","type":"post","link":"https:\/\/fin2me.com\/business\/hasbro-pivoting-to-asset-lite-entertainment-model-following-eone-sale\/","title":{"rendered":"Hasbro Pivoting To “Asset-Lite” Entertainment Model Following eOne Sale"},"content":{"rendered":"
Hasbro will move to an “asset-lite model for future live action entertainment” following the $500M eOne sale, according to CEO Chris Cocks.<\/p>\n
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 <\/em>animation and the Dungeons & Dragons <\/em>TV series as examples, both of which are being made with Paramount.<\/p>\n Deadline revealed Lionsgate was in pole position to buy on-the-block Woman King <\/em>studio eOne several weeks ago and confirmation came early this morning. <\/p>\n 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 <\/em>and PJ Masks. <\/em>Around 20% of eOne’s film and TV staff have been impacted by layoffs over the past few months.<\/p>\n 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.”<\/p>\n Hasbro revenues fell by 10% to $1.2B for the quarter, while adjusted operating profit nearly halved to $136M.<\/p>\n Elaborating on the eOne sale, Cocks said “necessary choices are being taken to right-size our entertainment footprint.”<\/p>\n “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.”<\/p>\n The outlook for entertainment over the coming months has been downgraded by Hasbro slightly, in part due to the Hollywood strikes, the company said.<\/p>\nRelated Stories<\/h3>\n
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