EXCLUSIVE: Lionsgate Races to Acquire Entertainment One from Hasbro
In an exciting development, Lionsgate has emerged as the frontrunner to acquire Entertainment One, which is owned by Hasbro, according to sources. This comes after Hasbro announced its decision to focus on its core business, leading to speculation about potential suitors. Alongside Lionsgate, Legendary and distributor GoDigital Media Group have also been vying for the eOne film and TV assets. Former eOne CEO Darren Throop has even launched a new effort to secure financing for the acquisition. Fremantle and CVC Capital Partners were also in the running earlier in the process.
Lionsgate, whose vice chair Michael Burns sits on the Hasbro board, is currently in the process of separating its film and TV studio from Starz. This move positions them strategically for the potential acquisition of eOne.
Meanwhile, eOne has been undergoing changes of its own. Nick Meyer left the company, and there have been layoffs affecting approximately 20% of the indie studio’s film and television staff. Hasbro spokesperson Roberta Thomson stated that these workforce reductions are part of the company’s ongoing transformational changes aimed at reducing costs and increasing growth rates and profitability.
Hasbro’s plan, announced in January, involves cutting 15% of its global workforce this year, amounting to around 1,000 positions. As part of the sale, Hasbro is offering all scripted and unscripted TV production (excluding the Family Brands division), film production and distribution, a vast content library of over 6,500 titles, and its stake in eOne’s Canadian film and TV business.
Hasbro CEO Chris Cocks previously stated that an update on the sale process was expected in the second quarter. However, due to various factors, the timeline has extended beyond June 30 and the process is still ongoing. The current economic challenges and strikes in Hollywood have contributed to a slowdown in M&A activity.
It’s worth noting that Hasbro acquired eOne in 2019 for $4 billion, dividing the company into three divisions: Music (which has since been sold), Family Brands (now integrated into Hasbro’s licensing and merchandising operation), and Film and TV. Hasbro also recently sold eOne’s music business to private equity firm Blackstone for $385 million in 2021.
Exciting times lie ahead as Lionsgate continues to lead the race in acquiring Entertainment One, a move that could reshape the entertainment industry. Stay tuned for further updates.
