Lionsgate buys eOne from Hasbro – Deadline

Hasbro has confirmed the sale of Leisure One (eOne) to Lionsgate for $500 million, which ought to shut by the top of this 12 months.

Hypothesis had been intensifying {that a} affirmation was within the playing cards, as Deadline revealed a number of weeks in the past that Lionsgate was in pole place to purchase nearly all of the vehicles in the marketplace. King’s girl And Yellow jackets studio. The information got here within the hours main as much as Hasbro’s second-quarter earnings name.

Hasbro eOne will promote for about $500 million, consisting of $375 million in money, topic to some buy worth changes, and Lionsgate’s assumption of manufacturing financing loans. Hasbro mentioned the deal has been permitted by each firms’ boards of administrators and stays topic to closing phrases and regulatory approvals. The proceeds shall be used to retire a minimal of $400 million in floating charge debt by the top of the 12 months.

“This sale aligns completely with our technique, and we’re happy to have efficiently accomplished the transaction,” mentioned Hasbro CEO Chris Cox. “Lionsgate’s administration staff is skilled in leisure and adept at driving worth, and we’re delighted to have discovered such a high-quality residence for our movie and TV enterprise in eOne.”

He mentioned Hasbro is “wanting ahead to partnering” with Lionsgate sooner or later, notably on the upcoming Monopoly film.

Lionsgate bought eOne’s scripted and unscripted tv manufacturing, all movie manufacturing and associated international distribution, a content material library of over 6,500 titles, and Hasbro’s curiosity in eOne’s Canadian movie and tv enterprise. Hasbro maintains the Household Manufacturers division, which incorporates staples corresponding to Peppa Pig And PJ Masks.

In preparation for the potential sale, eOne has undergone a number of rounds of layoffs over the previous few months which have affected about 20% of the unbiased studio’s movie and tv employees. Hasbro’s plan, introduced in January, included slicing 15% of the corporate’s international workforce this 12 months, or about 1,000 jobs, and we later revealed that eOne was closing its UK theatrical operations.

In the meantime, Lionsgate, whose vice chairman Michael Burns sits on Hasbro’s board, is working to separate its film and TV studio from Starz.

Hasbro purchased eOne in 2019 for $4 billion when the corporate was divided into three divisions: Music, which was offered; Household Manufacturers, which Hasbro has entered into the method of licensing and advertising and marketing its manufacturers; And cinema and tv. Hasbro beforehand offered eOne’s music enterprise to personal fairness agency Blackstone in 2021 for $385 million.

JP Morgan and Centerview Companions acted as Hasbro’s lead monetary advisors on the transaction. Cravath, Swaine & Moore LLP, Mayer Brown Worldwide LLP, Stikeman Elliott LLP are appearing as authorized counsel to Hasbro and Osler and Hoskin & Harcourt LLP are appearing as authorized counsel to eOne Canada Restricted.

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