US toymaker Hasbro will buy Canada-based studio Entertainment One (eOne) for about US$4 billion, expanding into the lucrative infant and preschool market by gaining access to popular TV shows like Peppa Pig and PJ Masks, Reuters reports.
The all-cash deal for eOne will give the Nerf and Power Rangers toymaker more exposure in its content media push, where it has been buying smaller firms and tying up with major movie studios to boost sales of toys linked to movie franchises, the report said.
Harbro’s CEO Brian Goldner said the toymaker will leverage eOne’s brands to expand opportunities globally.
“The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling,” Goldner was quoted as saying.
Peppa Pig, which brings in the bulk of revenue at eOne, is a popular show that is streamed on several platforms across the globe and has been grabbing more sales with the growing popularity of its toys and merchandise.
Last year, Hasbro spent about US$520 million to add children’s entertainment and merchandising franchises, including the characters of the superhero TV show Power Rangers.
Hasbro has also linked up with Paramount Pictures and Walt Disney and has seen growth with Marvel’s “Avengers” toys.
The company sees annual run rate synergies of about US$130 million by 2022, helped by savings from a portion of eOne’s toy business in-house and improving the profitability of its licensing and merchandising activities.
The eOne deal is expected to close in the fourth quarter of 2019.
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