After the release of yet another Transformers movie, Hasbro came back into prominence. The toy maker owns the right to one of the biggest movie franchises of all time, yet it comes into highlight today for a completely different reason. With mounting financial debt, Hasbro seems to find its solution through the sale of one of its subsidiaries, as a mega-deal with Lionsgate emerged to the surprise of fans.

Hasbro will be selling its Entertainment One film and TV unit to Lionsgate. The deal will be worth over $500 million and sees a major chunk of titles given over to the latter.

Lionsgate set to take over Entertainment One from Transformers’ owners Hasbro

While the new Transformers movie made waves among fans, Hasbro had other plans in the works. On Thursday, August 3rd, they announced a deal with Lionsgate to sell one of their subsidiaries. Under this deal, Lionsgate would purchase Entertainment One’s TV and film division at a price tag of around $375 million. This price is subject to change based on market conditions.

What makes this even more surprising is this deal received approval from both sides. The board of directors for both Lionsgate as well as Hasbro signed off on the deal. As a result, it is expected to be completed before the end of 2023. “The transaction has been approved by both companies’ boards of directors and remains subject to customary closing conditions, including the receipt of regulatory approvals,” they said.

As part of the deal, Lionsgate will be receiving a whole host of movies and TV shows under eOne. These include over 6500 and non-Hasbro-owned IPs such as The Rookie and more. Interestingly, the popular kids’ show Peppa Pig is not part of the deal. It also means Lionsgate will receive all ownership rights Hasbro held in Entertainment One Canada Limited.

Hasbro’s plans to become a gaming giant

Hasbro plans to use the majority of the proceeds from the deal to pay off its mounting debts. Originally buying eOne back in 2019 for $4 billion, unforeseen events such as the COVID pandemic saw Hasbro’s plans with eOne disrupted. Hasbro finally announced its intentions to sell it in November 2022. At the moment, Hasbro’s plans see it reinvesting money into profitable ventures under a newly appointed CEO Chris Cocks.

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Cocks’ dream is to transform Hasbro into a gaming giant, especially with the Transformers franchise. There was a recent push to include it on the Xbox Game Pass service. Moreover, the series has a lot of potential to expand, given the graphical upgrades of the current generation of gaming. Money from the sale could be used to finance a game from Hasbro’s IPs, perhaps even a new Transformers title.

What are your thoughts on this deal? Let us know in the comments below!

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