Hasbro’s sale of eOne’s film and TV business has received the necessary regulatory approvals and is on schedule to close by the end of the year.
As announced in August, Lionsgate is set to buy the assets for about $500 million — including a content library of close to 6,500 titles; active productions for non-Hasbro owned IP like The Rookie, Yellowjackets and Naked and Afraid franchises; and the eOne unscripted business. The toy maker had acquired eOne, which also owns properties such as the Peppa Pig and PJ Masks kids series, for about $4 billion.
“The sale of eOne film and TV, which continues to be on track for an end of year close, will simplify our operating model and refocus Hasbro on our core mission,” said Hasbro CEO Chris Cocks. “Moving forward, our entertainment efforts will be franchise led and asset light focused on driving toy and game sales, with support from world class content partners.”
The company still has more than 30 projects in development, including Transformers One with Paramount, an animated Magic: The Gathering series with Netflix, and a new YouTube series, Cocks said.
Within the company’s entertainment segment, revenue fell 42 percent in the third quarter, due to lower film and TV revenue from the writers and actors strikes. In its 2023 guidance, Hasbro expects revenue declines of 25 to 30 percent, which includes the impact of the writers and actors strikes on production deliveries in the second half of the year.
Hasbro reported revenue of $122.9 million in the third quarter of 2023 for the segment, compared to $211.6 million a year ago, with strength coming fom its family brands segment, including Peppa Pig. The segment’s operating loss of $801.4 million includes $473.0 million related to the planned sale of the eOne Film and TV business.
The eOne film and TV assets to be sold have delivered about $400 million of revenue year to date, down approximately 20 percent versus last year. Full year earnings are expected to be breakeven to a modest loss, the company said.
Overall, the company reported $1.5 billion in net revenue, down 10 percent year-over-year, and an operating loss of $170 million, after a profit of $194 million a year ago, as strength in the Wizard of the Coast and digital gaming segment was not able to offset softness in the entertainment and consumer products segment.