As part of a review of its entertainment strategy, Hasbro (NASDAQ:HAS) is rumored to be considering selling the assets.
According to a Bloomberg report from Sunday that relied on sources close to the situation, the toymaker is considering relocating the current employees in its entertainment division so they can concentrate on creating branded entertainment like “Peppa Pig” movies and stop working; on other projects like “Designated Survivor.” Selling off the entertainment assets that it doesn’t want is another option that Hasbro (HAS) is considering.
In response to the article, Hasbro told Bloomberg that it is “always open to new and better methods to tell tales that bring people together via the power of play via our world-class family of brands.”
According to the Bloomberg story, Hasbro (HAS) has been the target of activists this year who have demanded that the corporation spin off its well-known Wizards of Coast branch and explore selling its Entertainment One division. Ancora was one such activist.
Ancora wants the business to consider a partial or complete sale of Entertainment One, the division Hasbro purchased in 2019 for more than $4 billion that specializes in content products. Ancora said in the letter earlier this year that Hasbro (HAS) could obtain “significant” future tax benefits connected with the admitted loss and possibly recover up to $2 billion through the sale of eOne.
In June, Hasbro (HAS) defeated activist Alta Fox Capital in a proxy battle and decided against the corporation spinning off the Wizards of Coast division.
The largest toy business in the world reconsiders its Hollywood approach.
The Canadian media business best known for the children’s TV shows “Peppa Pig” and “PJ Masks,” Entertainment One (eOne) was acquired by Hasbro Inc. in August 2019.
Brian Goldner, then-CEO of Hasbro, had the vision to turn the toy manufacturer known for its G.I. Joe dolls and Transformers action figures into a major entertainment studio that also produces films and television programs. Goldner had attempted to purchase both DreamWorks Animation (the studio behind “Shrek”) and Lions Gate Entertainment Corp. (“The Hunger Games”) in the past but had been unsuccessful.
The assets of eOne, which started off as a Canadian music distributor in the early 1970s, are a mishmash. It produces a large number of movies and TV shows, like “Yellowjackets,” and owns holdings in other production firms, including Steven Spielberg’s Amblin. Additionally, it distributes films internationally.
Almost everything that might go wrong has happened in the two and a half years after the purchase was finalized. Goldner passed away at the young age of 58, the world pandemic shut down theaters and production, an activist investor bought a part in Hasbro, and they began pushing for some adjustments.
After repelling the activist, Hasbro is now reevaluating its entertainment approach and conducting a strategic review. The company still believes in “branded entertainment,” or additional “Transformers” movies, but it feels like a sizable portion of eOne’s revenue doesn’t fit into its long-term goals.
Two options are being considered by Hasbro, according to numerous people who are aware of its preparations. It can stop work on projects like “Yellowjackets” and “Designated Survivor,” divert the current personnel to create branded entertainment (think “Peppa Pig” movies) and take over the current workforce. Another option is to sell everything you don’t want. Death Row Records’ owner, the music label, had already sold for $385 million—more on Bloomberg.
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Author Jowi Kwasu 
