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Pre-school television favourite Peppa Pig is moving in with the Power Rangers, Transformers and Mr Potato Head.
Toymaker Hasbro Inc will buy Entertainment One Ltd, the owner of the popular animated series, for about $4 billion, marking its biggest acquisition ever. The deal adds the character and a suite of other kids media properties to its portfolio of bankable brands and positions Hasbro as a bigger player in the TV and movie segment.
Under the terms of the all-cash transaction, Entertainment One shareholders will receive £5.60 for each common share, which Hasbro said represents a 31 per cent premium to its 30-day average price. Hasbro shares slipped in late trading.
The transaction marks a major expansion of Hasbro’s media efforts as well as another example of the race to pick up smaller content owners and producers as a plethora of video-streaming companies come on to the scene.
The deal will give the toy company Entertainment Ones scripted and unscripted TV production and development capabilities, which include animated and live action shows. “Hasbro has been a driving force in turning toy properties like Transformers into entertainment, but until now, it has had to license its characters to studios to make films,” said John Tinker, an analyst for Gabelli & Co.
The acquisition also expands Hasbro’s global reach, by adding a major international brand to its portfolio. Peppa Pig is a global success, with big viewership in China, and new brand Ricky Zoom has the makings of a hit, too, Tinker said.
About half of Entertainment Ones revenue comes from outside the US.
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