Hasbro Buys Peppa Pig Owner in $4 Billion Deal

Telegram från Bloomberg / Omni Ekonomi
22 aug. 2019, 22.58

(Bloomberg) -- Toymaker Hasbro Inc. will buy Entertainment One Ltd. for about $4 billion, its biggest deal ever according to data compiled by Bloomberg. The acquisition expands Hasbro’s slate of intellectual property to include pre-school favorites Peppa Pig and PJ Masks. Hasbro’s shares slipped in late trading.

  • Under the terms of the all-cash transaction, eOne shareholders will receive 5.60 pounds in cash for each common share, which Hasbro said represents a 31% premium to its 30-day average price.

Key Insights

  • The acquisition will provide “a pipeline of new brand creation driven by family-oriented storytelling, which will now include Hasbro’s IP,” Hasbro Chief Executive Officer Brian Goldner said.
  • The deal will give the toy company Entertainment One’s scripted and unscripted TV production and development capabilities, which includes animated and live action shows. Hasbro has been a driving force of turning toy properties like Transformers into bankable TV shows and movies, and this will allow it to grow more in this profitable area.
  • The acquisition also expands Hasbro’s global reach, by adding a major international brand to its portfolio. About half of Entertainment One’s revenue comes outside the U.S.

Market Reaction

  • Hasbro shares fell 4% to $109.80 at 4:44 p.m. in late trading in New York. The stock has gained 41% so far this year. Entertainment One shares have risen 20% so far this year.

To contact the reporters on this story: Matt Townsend in New York at mtownsend9@bloomberg.net;Joe Deaux in New York at jdeaux@bloomberg.net

To contact the editors responsible for this story: Anne Riley Moffat at ariley17@bloomberg.net, Jonathan Roeder

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