Lionsgate has reached a $500 million deal to acquire Entertainment One from Hasbro.
Lionsgate will pay $375 million in cash and assume outstanding production financing loans. The deal is subject to the approval of the boards of both companies and relevant regulators. It is expected to close by the end of the year. The deal includes Hasbro's stake in Entertainment One Canada Limited, whose board has already approved the sale. It also includes film rights to Monopoly.
"The acquisition of eOne checks off all the boxes in areas that play to our core strengths," Lionsgate CEO Jon Feltheimer said in a statement. "It will be immediately and highly accretive, adds a world-class library with thousands of properties, strengthens our scripted and unscripted television business and continues to expand our presence in Canada and the UK. The deal is the culmination of our long-standing relationship with the immensely talented team at eOne, and it continues to build our position as one of the world's leading independent content platforms with a stockpile of great intellectual properties and a unique, non-replicable portfolio of assets."
Entertainment One currently oversees the production of Power Rangers. Lionsgate is no stranger to Power Rangers, having produced the 2017 film just prior to the franchise's $522 million acquisition by Hasbro. However, the sale does not include the content library of any Hasbro intellectual property, including Power Rangers.
The sale price for eOne is a far cry from the $4 billion Hasbro paid for the studio in 2019. Then-CEO Brian Goldner saw the company pivoting into entertainment. After his death in 2021, a strategic review conducted by successor Chris Cocks determined eOne should be sold. Hasbro's board signed onto the plan and the toymaker began shopping the unit last November.
“This sale fully aligns with our strategy, and we are pleased to bring the process to a successful close,” Cocks said in a statement. “Lionsgate’s management team is experienced in entertainment and adept at driving value, and we’re glad to have found such a good home for our eOne film & TV business.”
Deadline reported last November that Cocks took office dead-set against Goldner's approach to entertainment, with one source telling the publication he lacked interest in anything that doesn't directly lead to toy sales. Besides projects related to Hasbro properties, eOne's recent investments included films like "The Woman King" and "Orphan: First Kill" and television series like "Yellowjackets" and "The Recruit."
Inflation had also put pressure on discretionary spending, including toy purchases, forcing Cocks to seek ways to cut costs.
Entertainment One had weathered job cuts since its acquisition by Hasbro. In June, eOne laid off 20% of its staff as part of company-wide headcount reductions.
Licensed productions will continue at eOne and elsewhere. Jonathan Entwistle is leading the charge for new Power Rangers television and film projects to run on Netflix. Jenny Klein last year signed a two-year deal specifically for a television series.
“Entertainment remains a priority for Hasbro. Hasbro will continue to develop and produce entertainment based on the rich vault of Hasbro-owned brands. We will also bring to life new original ideas designed to fuel all areas of Hasbro’s blueprint including toys, publishing, gaming, licensed consumer products, and location-based entertainment."
As the deal was announced, Steve Bertram, eOne's president of film and television, announced his departure to the unit's employees, The Hollywood Reporter reported. He told employees he would stay on through the transition process.
The sale comes as the Warner Bros./Mattel Films fantasy comedy "Barbie" burns up the box office. Mattel is planning further films based on properties including Barney, Hot Wheels and Polly Pocket.
