Toymaker Hasbro said Thursday it is exploring the sale of its Entertainment One film and TV production and distribution unit in a process that will “maximize the value” of the business for its investors.
“Following our recent Investor Day where we introduced our new branded entertainment strategy, Blueprint 2.0, we received inbound interest from several parties for the part of the eOne television and film business that while valuable, is not core to our go-forward strategy,” Hasbro’s CEO Chris Cocks said in a statement. “This interest informed our decision to explore a sale process.”
Hasbro bought eOne in 2019 in a $3.8 billion all-cash deal, giving it access to a cache of highly rated brands, including “Peppa Pig,” “Clifford the Big Red Dog” and more.
“The acquisition of eOne delivered fantastic talent, top tier production and deal making capability and beloved brands with strong toyetic potential including Peppa Pig,” Cocks said. “We will retain these terrific capabilities while exploring the best way to maximize the value of the eOne TV & Film Business for the benefit of our shareholders.”
Hasbro said it will “maintain the capability to develop and produce animation, digital shorts, scripted TV and theatrical films for audiences related to core Hasbro IP.”
Along with “Peppa Pig,” Hasbro identified “Transformers,” “Dungeons and Dragons,” “Magic: The Gathering,” “My Little Pony,” “Power Rangers” and others as “priority brands.”
The company also continues to develop new IP, including “Kiya and the Kimoja Heroes,” a preschool animation series scheduled to premiere on Disney Junior and Disney+ in 2023.
The eOne sale announcement comes three months after the company said eOne CEO Darren Throop will depart by year’s end. Throop led eOne prior to Hasbro’s purchase and joined the company at the takeover.
Hasbro retained J.P. Morgan and Centerview Partners to assist with the sale process, which is expected to take several months
Hasbro shares jumped at the opening bell Thursday, but gave back some of gains to trade up 0.9% at $56.02 in late morning trading. The stock has changed hands between $55.15 and $105.73 in the past 52 weeks, and remains down about 46% since the start of the year, a wider drop than the roughly 20% seen by the S&P 500.