Daily Management Review

Hasbro signs the largest deal in its history


Toy maker Hasbro paid $ 4 billion for Canadian Entertainment One, which created the cartoon Peppa Pig. The largest deal in Hasbro’s history will help it more effectively promote its products in the media.

American toy maker Hasbro will pay $ 4 billion will buy the Canadian company Entertainment One, which owns the rights to the cartoon Peppa Pig, Hasbro reported. According to Bloomberg, this is the largest deal in Hasbro’s history.

The deal has already been approved by the boards of directors of both companies. Now they have to get permission from regulatory authorities. Hasbro and Entertainment One expect the deal to be completed in Q4 2019.

Hasbro is the world's largest toy maker. The company owns the rights to toys under the brands Transformers, Star Wars, Pokemon and My Little Pony. In addition, the company has rights to the board games Monopoly and Jenga.

Entertainment One is a distributor of movies, television shows, and other entertainment content. The company has been producing Peppa Pig for 15 years. The Financial Times notes that by March 31 this year, the cartoon earned £ 90.2 million (over $ 111 million) in 12 months, which is 20% more than in the previous same period.

Peppa Pig, PJ Masks (another cartoon by the company) and other brands that Entertainment One is working on are very profitable and have high sales potential, Hasbro CEO Brian Goldner told to The Wall Street Journal.

The deal will allow Hasbro to better promote its products in the media, writes The New York Times. Previously, the company has already taken steps in this direction - it bought small firms and entered into agreements with studios to sell toys based on popular franchises. Last year, for example, the firm spent about $ 520 million on several brands, the most famous of which were Power Rangers. The company also collaborates with Paramount Pictures and Walt Disney Studios, and successfully sells toys based on the Marvel’s Avengers movie, NYT recalls.

Toy sales have dropped in recent years and manufacturers are looking for new ways to invest, WSJ notes. For example, Hasbro recently released a special edition of Monopoly based on the popular Fortnite game, while American Mattel launched its own film studio for producing films about Barbie. The deal shows that Hasbro seeks to create its own brands in the entertainment industry that are not only related to toys, Jackie Breyer, publisher of The Toy Book, an industry magazine, told Reuters.

source: ft.com, reuters.com, nytimes.com