In a significant move, Lionsgate has officially sealed the acquisition of studio Entertainment One (eOne) from toy giant Hasbro, marking a $375 million deal that finalized on Wednesday.
This acquisition marks a substantial augmentation to Lionsgate’s already extensive library, injecting an impressive 6,500 film and television titles into its repertoire. Notable additions include acclaimed series such as Showtime’s “Yellowjackets,” ABC’s “The Rookie,” and Discovery’s “Naked & Afraid” franchise.
However, the sale is subject to adjustments in the purchase price, with Lionsgate also taking on the responsibility of assuming production financing loans for ongoing eOne projects.
This closure follows Lionsgate’s earlier agreement in August to purchase eOne’s TV and film operations from Hasbro for $500 million. Interestingly, this sale announcement coincides almost precisely with the four-year mark since Hasbro’s initial intent to acquire eOne in a $3.8 billion deal back in August 2019.
In anticipation of the merger’s finalization, Lionsgate had previously implemented workforce reductions, resulting in a 10% reduction in eOne’s staff earlier this month. Preceding this, in June, Hasbro had trimmed the studio’s workforce by 20% as part of its strategy to divest the asset.
Certain well-known intellectual properties were notably excluded from the sale to Lionsgate, including franchises like “Peppa Pig,” “Transformers,” “Dungeons & Dragons,” “Magic: The Gathering,” “My Little Pony,” “Power Rangers,” “Play-Doh,” and “Clue.” However, the merger does encompass film development rights for the popular game “Monopoly.”
Commenting on this acquisition, Lionsgate CEO Jon Feltheimer stated, “The eOne acquisition concludes a busy year in which we continued to execute our strategy of strengthening our studio business as we prepare for the separation of Lionsgate and Starz into pure play standalone companies.” Feltheimer also expressed confidence in the value and potential of eOne as a valuable and highly beneficial addition to their business. He warmly welcomed eOne’s talented workforce into the Lionsgate family.
The transaction received counsel from Jefferies & Co., Sheppard Mullin, and Denton’s Canada LLP.
