Hasbro (NASDAQ:HAS) in Talks to Sell eOne Back to Founder

Toy maker Hasbro (NASDAQ:HAS) is holding discussions with Entertainment One’s (eOne) founder Darren Throop to sell most of eOne’s assets back to him, Bloomberg reported. Throop is among the leading bidders for eOne and is backed by private equity firm CVC Capital Partners.

In November 2022, Hasbro announced that the board authorized a sale process for the part of its eOne TV and film business that is non-core to the company. The decision to sell this business was made just three years after it was acquired in 2019 for $4 billion. The company plans to retain key brands, including Peppa Pig, Transformers, My Little Pony, and Play-Doh.

The assets on sale include a library of over 6,500 titles and eOne’s TV and film production divisions that have been behind shows like Naked & Afraid, Yellowjackets, and The Rookie, and a distribution business. These businesses represent revenue worth $1 billion or about 16% of Hasbro’s overall revenue. Hasbro sold eOne’s music business to Blackstone for $385 million in 2021. 

During the fourth-quarter earnings call held in February, Hasbro CEO Chris Cocks stated that the sale process for the majority of eOne was well underway, with “strong interest in these valuable assets.” The CEO added that an update is expected in the second quarter. The company expects to invest the proceeds to reduce debt, in its gaming brands, and new movies based on its franchises.

Is Hasbro a Good Stock to Buy?

Hasbro is scheduled to announce its first-quarter results on April 27. Analysts expect the company to report a loss per share of $0.01 compared to EPS of $0.57 in the prior-year quarter.

Wall Street’s Moderate Buy consensus rating for Hasbro is based on five Buys, four Holds, and one Sell. The average price target of $69.90 implies 36.3% upside. Shares have declined nearly 16% since the start of this year.

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