Hasbro to Sell Film and TV Business for $500 Million

Hasbro is selling its film and TV business to re-center on toys and games.

The company reached a definitive agreement to sell the film and TV business, eOne, to Lionsgate for approximately $500 million, according to a Wednesday (Aug. 2) press release.

The sale includes a team of personnel, a library of nearly 6,500 titles, and active productions for non-Hasbro-owned intellectual property, the release said.

“The sale of eOne is another important milestone in our transformation at Hasbro,” Hasbro CEO Chris Cocks said Thursday during the company’s quarterly earnings call. “Last year, we articulated a plan to turn around Hasbro, driving growth in fewer, bigger, more profitable brands; improving our consumer focus, execution and innovation; and building our operational excellence to fuel our bottom line and create sustainable performance.”

“At the highest level, it’s a plan about re-centering Hasbro on what has helped us create one of the most valuable portfolios of brands in toys and games: the timeless power of play,” Cocks added.

Hasbro also said in the release that the proceeds from the sale would be used to retire a minimum of $400 million in floating rate debt and for other general corporate purposes.

Additionally, a new marquee — Hasbro Entertainment — will be used for the company’s ongoing entertainment effort following the successful completion of the sale. This marquee will encompass entertainment based on Hasbro-owned brands, management said during the call.

Speaking about the company’s inventory levels, Hasbro Chief Financial Officer Gina Goetter said the company’s owned and operated inventory in the toys and games segment has been reduced by 24% year over year, and retailer inventory has been sold down by 16%.

Cocks said during the call that Hasbro thinks its retailer inventory is “at a pretty productive level” and will end the year down, and that its own inventory is still “a little bit elevated versus what we would typically be” but will end the year down and closer to a more traditional level.

Hasbro had previously reported that there was $135 million of excess inventory.

“While headwinds and uncertainty continue to exist in the toy and game category as a whole, a better-than-planned start to the year so far for Hasbro sets us up for success in the back half,” Cocks said on the call.