Hasbro Purchases Entertainment One Ltd

The world’s largest toymaker has added to its vast family of brands with its acquisition of Entertainment One Ltd for approximately $4 Billion. They will pay $6.86 a share for the brand, about a 30% premium. “By combining two profitable and financially disciplined companies we expect to unlock value in the short- and long-term for our stakeholders,” says Hasbro CFO Deborah Thomas about the deal. The company is confident that this purchase will lead to great returns and a spur a pipeline of new brand creation.

The deal adds treasured global preschool brands, Peppa Pig and PJ Masks, as well as a slate of additional brands in development, including newly introduced Ricky Zoom, to Hasbro’s strong brand portfolio. Surprisingly, shares of Hasbro fell over 5%, to $ 108 in after-hours trading. Hasbro expects to preserve its quarterly dividend and suspend its current share repurchase program while it prioritizes attaining its leverage target.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

%d bloggers like this:
search previous next tag category expand menu location phone mail time cart zoom edit close