|Day's Range||5.20 - 5.20|
Some of the world’s most powerful leaders are meeting in France this weekend for the G7 summit. On another note, Hasbro is acquiring the owner of children’s brand Peppa Pig. Yahoo Finance’s Edmund Heaphy and Jen Rogers discuss.
Moody's Investors Service ("Moody's") today placed Hasbro, Inc.'s ("Hasbro") Baa1/Prime-2 ratings on review for downgrade following its announcement that it will acquire UK-listed Entertainment One Ltd. for GBP3.3 billion or approximately $4.0 billion. Hasbro plans to fund the acquisition with debt and $1-$1.25 billion of equity. Moody's expects that if the deal closes and is funded as contemplated, that Hasbro's senior unsecured rating would be downgraded by at least one, but not more than two notches.
Hasbro has acquired Entertainment One for $4 billion, a deal that comes with Peppa Pig and lots of other assets.
Hasbro (HAS) agrees to buy Entertainment One for $4 billion. This buyout is likely to be accretive to the company's EPS in the first year.
Hasbro said it has agreed to acquire eOne for about 3.3 billion pounds ($4 billion) in cash. The deal provides for eOne shareholders receiving 5.6 pounds in cash for each share they hold in the company, which represents a 31% premium to the 30-day volume-weighted average price of eOne shares as of Aug. 22. Entertainment One, or eOne, is an independent studio specializing in the development and distribution of entertainment content.
(Bloomberg) -- After years of longing, Hasbro Inc. can finally call itself a full-fledged entertainment company.The toymaker agreed to spend $4 billion for Entertainment One Ltd., the studio that makes the Peppa Pig and PJ Masks children’s shows, expanding its media business at a time when the race to consolidate the TV and film-making industry is heating up.“This can take their business to another level,” John Tinker, an analyst for Gabelli & Co., said.The world’s largest publicly traded toymaker will pay 5.60 pounds a share in cash, 26% more than Thursday’s closing price. Entertainment One rose as high as 6.16 pounds, indicating some investors anticipate a higher bid for the company, which also makes movies and music. The bonds reached a record high.Hasbro’s biggest-ever deal would give it TV production and development capabilities, including animated and live action shows, at a time when growth in video-streaming is spurring competition for content producers. Entertainment One is a perennial takeout candidate, and the stock is supported by speculation that media giants such as Netflix Inc., Discovery Inc. or Liberty Media Corp. may be interested to gain its popular brands, analysts at broker OliveTree Financial said.Hasbro shares fell as much as 7.3% to $106 on Friday, the biggest decline in 10 months. The stock had gained 41% this year through Thursday’s close.Rival Mattel fell as much as 6.9% Friday. The Hasbro deal would likely take any remaining M&A premium out of Mattel, as the mid-cap toymaker was thought to be target of Hasbro, Jefferies analyst Stephanie Wissink wrote, trimming her 12-month price target on Mattel to $10.50 from $12.“We would not rule out a competing bid for Entertainment One,” wrote Drew McReynolds, an analyst at RBC Dominion Securities. Still, the chance is low, as a rival bidder might not be able to achieve the $130 million revenue synergies that Hasbro is targeting.Hasbro has been a driving force in turning toy properties like Transformers into entertainment, but until now it has mostly had to license its characters to studios to make films, said Tinker.And after years of looking for an entertainment company to buy, including dalliances with Lions Gate Entertainment Corp. and DreamWorks Animation, Hasbro has finally locked up a deal that equips them to make larger films, he added.The decline in the British pound made the valuation of Entertainment One, which is listed in London and headquartered in Canada, more attractive, and the deal comes just days after Hong Kong’s Li family agreed to pay $3.3 billion for U.K. pub operator Greene King Plc.Read more: Hasbro Push Into Media Shines Light on Other Film and TV TargetsThe acquisition also expands Hasbro’s 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 One’s revenue comes from outside the U.S.U.K. broadcaster ITV Plc bid 1 billion pounds for Entertainment One in 2016, but the production company refused to enter talks. ITV isn’t currently interested in making a counter bid for Entertainment One, according to a person familiar with the matter. A representative for the U.K. firm declined to comment.China ‘Beachhead’“We see opportunities for emerging markets. It’s also heartening to see that eOne has gotten great traction in markets like China for Peppa,” Hasbro Chief Executive Officer Brian Goldner said in a call with analysts following the deal’s announcement. He added the tie-up gives the company “a real opportunity for a beachhead that can go in China for many years to come.”Hasbro plans to plug these characters into a brand-building infrastructure that has turned dormant properties like My Little Pony into massive revenue generators.Hasbro executives said share buybacks will be halted and that cash will instead be allocated to paying down debt. The company will maintain its dividend program.Chief Financial Officer Deborah Thomas said the company wants to keep its investment grade rating and will look to finance the deal via term loans, bonds and proceeds from an equity offering of $1 billion to $1.25 billion.(Updates share trading)\--With assistance from Stefan Nicola, David Hellier, Aaron Kirchfeld and Cristin Flanagan.To contact the reporters on this story: Matt Townsend in New York at email@example.com;Anousha Sakoui in Los Angeles at firstname.lastname@example.org;Joe Deaux in New York at email@example.comTo contact the editors responsible for this story: Anne Riley Moffat at firstname.lastname@example.org, Thomas Mulier, Rob GolumFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
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(Bloomberg Opinion) -- At first glance, Entertainment One Ltd. and Hasbro Inc. make for ideal bedfellows. The former makes kids TV hit Peppa Pig, the latter is the world’s biggest toymaker. Merge one with the other and you get a combined video and merchandising giant.That’s why there’s sound strategic rationale for Hasbro’s planned 3.3 billion-pound ($4 billion) acquisition of the Toronto-based studio. It gets its trotters on some valuable kids’ franchises that it can turn into more toys, and it can use eOne’s TV and film production chops to exploit its own catalog of games, which span from Monopoly to Buckaroo! to Jenga.Hasbro has a decent if not stellar track record of turning its game franchises into films. The Transformers and G.I. Joe movies have done well at the box office, though no one would accuse them of being critical successes.That’s where reservations about the eOne deal come in. While it might be known as the firm behind Peppa Pig, the cartoon represents just 10% of its total revenue. The company’s family and brands business is expanding quickly, but its film and television division, which has made films such as Green Book and TV shows including The Walking Dead, contributes more sales and profit. It has something that Hasbro lacks: prestige.Darren Throop, the eOne chief executive, prides himself on the quality of the film and TV productions. It’s easy to see how eOne stalwarts might find the prospect of churning out spinoffs from Hasbro’s board games and toys hard to stomach. Sure, the deal logic holds up on paper: 130 million pounds of anticipated synergies by 2022 could lead to returns from the deal nearing 8% based on analyst earnings forecasts, just about covering the cost of capital. And that's before any upside from selling more toys or making more films.But are these firms as good a cultural fit as they insist? That might be the biggest hurdle to realizing the deal’s potential. That’s assuming it even completes. Right now, that’s in doubt. The stock traded as high as 5.90 pounds on Friday, above Hasbro’s 5.60 pounds-per-share bid, suggesting investors anticipate either an activist pushing the purchase price higher, or a counterbidder sticking their snout in. Rivals might include the Walt Disney Co., John Malone’s Liberty Global Plc, Vincent Bollore’s Vivendi SA, Comcast Corp. or even toymaking rival Mattel Inc.The plethora of competing TV and film streaming services has sparked a fight for high-quality content, and eOne has some of the best, helped by relationships with Steven Spielberg, with whom it has a production joint venture, and super-producer Mark Gordon.Disney expanded from a production company into a merchandising and theme park giant, and its success under CEO Bob Iger has been built around recognizable franchises such as Star Wars, Marvel and Pixar’s output. Hasbro is making a play to do the same but in the opposite direction. High-quality content is increasingly scarce and expensive, though. That might make eOne an equally tasty morsel for someone else.To contact the author of this story: Alex Webb at email@example.comTo contact the editor responsible for this story: James Boxell at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Alex Webb is a Bloomberg Opinion columnist covering Europe's technology, media and communications industries. He previously covered Apple and other technology companies for Bloomberg News in San Francisco.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
Hasbro Inc. said late Thursday it has agreed to buy Entertainment One Ltd. in an all-cash $4 billion deal, bringing preschool brands such as Peppa Pig and PJ Masks under its umbrella.
U.S. toy maker Hasbro has agreed to buy Peppa Pig and PJ Masks owner Entertainment One but the $4 billion offer could start a bidding war.
The deal agreed by the Nerf and Power Rangers-maker was four times the 1 billion-pound ($1.22 billion) takeover offer which eOne rejected from UK commercial broadcaster ITV in 2016 as undervaluing the company. Some analysts, however, suggest the deal may not be cast in stone, questioning how the part of eOne's business that is not aimed at infants and preschoolers will fit in with Hasbro's offering of children's toys or dolls. Entertainment One also distributes movies aimed at an adult audience in a number of markets, which might make its film production and distribution arms of interest to Disney or another leading company in a media and streaming sector that is deep in flux, according to analysts.
Investing.com - U.S. futures inched higher on Friday ahead of a speech from Federal Reserve Chairman Jerome Powell at the central bank's annual gathering in Jackson Hole, Wyoming.
The boards of the two companies said on Thursday that they had agreed a price of roughly $4 billion (3.27 billion pounds) in cash for the deal, which gives Hasbro access to Entertainment One's lucrative shows aimed at infants and preschoolers. Under the deal, Entertainment One's shareholders will receive 560 pence per share, representing a premium of 26.4% to Thursday's close. Entertainment One's shares rose to as much as 579 pence on Friday.
U.S. stock futures turn lower Friday after China says it will retaliate in its tariff battle with the U.S.; Salesforce jumps after reporting second-quarter earnings that beat estimates and raising its fiscal-year guidance; VMware to buy Pivotal Software and Carbon Black; Hasbro acquires the owner of the rights to 'Peppa Pig.'
Hasbro is going the whole hog on Peppa Pig. The US toymaker responsible for Nerf guns and Monopoly is paying £3.3bn ($4bn), including debt, to acquire Entertainment One , owner of the popular porcine cartoon ...