Lionsgate, the global entertainment company, has announced its acquisition of Hasbro’s Entertainment One (eOne) film and TV business for $500 million in a deal that is set to expand Lionsgate’s global content library. The transaction comprises $375 million in cash, subject to certain price adjustments, and the assumption of production financing loans.
Both companies’ boards of directors have approved the deal, which is still subject to customary closing conditions and regulatory approval. The transaction is expected to be finalized by the end of 2023.
The acquisition of eOne will provide Lionsgate with a content library of nearly 6,500 titles, including active non-Hasbro owned intellectual properties (IP) such as The Rookie, Yellowjackets, and the Naked and Afraid franchises. It will also include the eOne unscripted business and certain rights to Hasbro-based shows like Play-Doh Squished. Furthermore, the sale includes Hasbro’s interest in the Canadian film and TV operations of Entertainment One Canada Limited. Notably, the eOne branded film business has produced and financed films such as Dungeons & Dragons: Honor Among Thieves and The Woman King.
Lionsgate CEO Jon Feltheimer expressed excitement about the acquisition, describing it as a strategic move that aligns with the company’s strengths. The deal is expected to be immediately accretive and will strengthen Lionsgate’s presence in Canada and the U.K. Feltheimer highlighted the long-standing relationship between Lionsgate and the talented team at eOne, concluding that the acquisition will solidify Lionsgate’s position as one of the world’s leading independent content platforms.
Hasbro had previously announced its intention to sell eOne in November 2022. The toy maker had acquired the Toronto-based studio in 2019 as part of a $4 billion all-cash deal, aiming to expand its media presence by combining eOne’s film and TV unit with its own. However, the pandemic disrupted Hasbro’s media strategy due to the Hollywood production shutdown and delays in content delivery. As a result, Hasbro shifted its focus to becoming a digital gaming powerhouse under the leadership of CEO Chris Cocks.
With the sale of eOne, Hasbro plans to reinvest in fewer properties that offer greater profitability. The company intends to collaborate with external partners to reduce costs and risks. Hasbro CEO Chris Cocks emphasized that the sale fully aligns with the company’s strategy and expressed confidence that Lionsgate’s management team, with their experience in entertainment and value creation, will provide eOne with a good home.
The acquisition was advised by Jefferies & Co., Ernst & Young, and Sheppard Mullin for Lionsgate, while J.P. Morgan and Centerview Partners served as lead financial advisors to Hasbro. Legal counsel was provided by Cravath, Swaine & Moore LLP, Mayer Brown International LLP, Stikeman Elliott LLP on behalf of Hasbro, and Osler, Hoskin & Harcourt LLP on behalf of Entertainment One Canada.
Overall, the acquisition of eOne by Lionsgate marks a significant expansion of Lionsgate’s global content library and strengthens its position in the entertainment industry. The deal is projected to bring numerous opportunities for both companies and further enhance the quality and variety of content available to audiences worldwide.
