Lions Gate Entertainment (LGF.A) announced that it has completed the acquisition of the global entertainment platform, eOne, from Hasbro HAS. The purchase price for eOne was $375 million in cash.
The sale is subject to purchase price adjustments, plus Lions Gate’s assumption of production financing loans for eOne projects. This acquisition significantly enriches the company’s library with the addition of 6,500 film and television titles. It serves to enhance and fortify LGF.A’s scripted and unscripted television divisions while expanding its brand and franchise portfolio, as well as extending its influence in Canada and the U.K.
eOne, known for producing notable content like The Rookie, the critically acclaimed Showtime series Yellowjackets and the enduring Discovery unscripted series Naked & Afraid, now contributes its diverse catalog to Lions Gate’s extensive entertainment offerings.
LGF.A also secures film development rights to Hasbro’s cherished Monopoly brand. This acquisition represents a significant milestone for Lions Gate, solidifying its position in the global entertainment industry and opening up new avenues for growth and success.
This acquisition is expected to boost the company’s top line in the upcoming quarters.
The Zacks Consensus Estimate for Lions Gate’s fiscal 2024 revenues is pegged at $3.92 billion, indicating 1.76% year-over-year growth. The consensus mark for earnings is pegged at 55 cents per share, indicating 1275% year-over-year growth.
Lions Gate Entertainment Corp. Price and Consensus
Lions Gate Entertainment Corp. price-consensus-chart | Lions Gate Entertainment Corp. Quote
Lions Gate’s Expanded Library to Fend Off Competition
As the largest independent film company globally, Lions Gate is home to beloved franchises like John Wick, The Hunger Games, Twilight, Saw, The Expendables and Now You See Me. Annually, the studio releases 10-15 wide theatrical films and an additional 40-50 titles across various platforms, including direct-to-streaming.
The company’s film, television, subscription and location-based entertainment ventures are supported by an extensive library boasting 18,000 titles. Lions Gate is renowned for its iconic film and television franchises and is characterized as a forward-looking digital company, guided by an entrepreneurial spirit and a dedication to innovation.
Shares of Lions Gate, which currently carry a Zacks Rank #3 (Hold), have gained 82.8% year to date against the Zacks Consumer Discretionary sector’s decline of 16.8% due to a vast portfolio of content. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LGF.A’s expanded library fends off competition from Disney DIS and Warner Bros. Discovery WBD.
Disney Plus stands as a formidable competitor to Lions Gate, offering a compelling range of content. It is the exclusive platform for streaming a vast collection, including Disney and Pixar libraries, Star Wars movies, Marvel films, original TV shows, National Geographic content and extensive seasons of The Simpsons. Hit series like The Mandalorian, Loki, Andor and She-Hulk, along with critically acclaimed titles like Turning Red and Encanto, have garnered widespread popularity.
Paramount Plus consolidates live news and sports with a vast array of on-demand content, encompassing shows and movies, including original productions. Leveraging the diverse brands of Paramount, such as CBS, MTV, BET, Comedy Central, Nickelodeon, Paramount Network, and Paramount Pictures movie studio, the platform offers a comprehensive entertainment experience. Key attractions include the Star Trek catalog, featuring classics and new originals like Star Trek: Discovery and Picard, along with acclaimed series like The Good Fight.
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