A Hasbro Monopoly board game arranged in Dobbs Ferry, New York, Feb. 6, 2022.
Tiffany Hagler-Geard | Bloomberg | Getty Images
Four years after acquiring Toronto-based production studio eOne, Hasbro is selling it off to Lionsgate.
The deal, announced Thursday, is valued at $500 million. That price tag consists of $375 million in cash and the assumption of production financing loans.
The Rhode Island-based toymaker plans on using the proceeds to pay down its floating rate debt as it refocuses on its toy and game businesses. Without eOne, Hasbro will also return to licensing and partnerships with studios to fund entertainment projects for brands such as Dungeons and Dragons, PlayDoh, Magic: The Gathering and Transformers.
“This announcement is consistent with our expectations, but should be welcomed news (in our opinion) for investors, as we believe the divestiture leads to higher cash flow generation and earnings power for the biz,” wrote Drew Crum, analyst at Stifel, in a research note…
2023-08-03 18:11:20
Source from www.cnbc.com