The company “Entertainment One Ltd”, which owns the rights to the beloved children’s animated cartoon series “Peppa Pig”, and now a new mission to create not only products for children, but also to promote toys “Hasbro Inc”. This American company of the toy industry plans to buy up to 4 billion canadian “Entertainment One Ltd”, which distributes films, TV serials and other entertainment content.
The main reason for the acquisition companies and their unions is that now worldwide a decrease in the sale of toys and the interest in them. Simple is ceased to operate on children and their parents, which already is no surprise. In this regard, the toy manufacturers looking for new ways of product promotion, one of which is collaboration with other manufacturers or companies.
So I decided to enter the company “Hasbro Inc”, decided to attract and producer of the animated film and musical products “Entertainment One”. After all, the company that can manage the needs of children in constant watching cartoons (well, one of the kids doesn’t love Peppa Pig? The cartoon was translated into 40 languages and shown in more than 180 countries!), can help to sell toys.
As you know, the assets of “Entertainment One” aimed at attracting an audience of children, in particular preschoolers. The company also creates TV shows and movies for an adult audience and operates the music business.
— Acquisition of Hasbro company eOne (“Entertainment One” )will add to our products the world’s favorite family brands, based on the popular stories.It will provide a high operating return on portfolio Hasbro” and create a new brand, which will now include the company’s intellectual property, — said the Chairman and CEO of Hasbro Brian Goldner.
In addition, Hasbro will use entertainment and eOne to represent brands that will attract an audience of preschoolers, students and even gamers.
Today, Hasbro already produces a series of toys based on the popular animated series and movies. For example, “My Little Pony”, “transformers” and “Star wars.”
However, the company “Entertainment One Ltd” not against the fact that they “bought” for good money.
On behalf of the Board of eOne, I want to say that we are very satisfied with the Union. This transaction creates significant immediate value for our shareholders as it recognizes the strength of our future business model , — said the Chairman of the Board of Directors of eOne Allan Leighton.
We add that a deal between the companies must be approved by the court in Ontario and shareholders “Entertainment One”. Hasbro will Finance it at the expense of the proceeds from the borrowing of capital and issuance of shares.
It is worth noting that yesterday – August 22, shares of Hasbro fell by 5.5% on additional auction after the closing of the trading session. While the securities “Entertainment One” during today’s session in London (August 23) will rise by 29.7%.