WASHINGTON (dpa-AFX) - Hasbro Inc. (HAS) Monday said it has agreed to sell eOne Music business to private equity company Blackstone Group Inc. for $385 million in cash.
eOne Music will now operate as a separate business unit headed by its current Global President, music industry veteran Chris Taylor. It will focus on building a creator-first music brand with global scale and expertise.
Hasbro had acquired eOne, an independent studio that does business in film and TV as well as music, in 2019 for almost $4 billion in cash.
Although Hasbro is popular as a toy maker, the company has successfully turned some of its more popular brands like G.I. Joe and Transformers into successful film and TV franchises. The company expected the acquisition of eOne to turn it into a more dominant force in the entertainment industry.
Hasbro has now divested the music division of the eOne operations to Blackstone, which already owns SESAC, a music rights organization.
'This transaction will ensure that eOne Music is well positioned to unlock great opportunities for its many talented artists and partners, as Hasbro continues to focus on the core strategic elements of our Brand Blueprint to further strengthen our position as a purpose-led play and entertainment company. On behalf of the Board and Hasbro management, I want to recognize the strong leadership of Chris Taylor and the entire eOne Music organization,' said Brian Goldner, Hasbro's Chairman and CEO.
The eOne Music division's management group represents over 70 artists including Alice Ivy, Fred Again, Powfu, Tegan and Sara, Kaytranada, The Blessed Madonna, Lights and Arkells.
Hasbro intends to use the proceeds from the sale to accelerate deleveraging and other general corporate purposes. The deal is expected to close in the second or third quarter of 2021. As part of the transaction, Entertainment One Canada Ltd will sell the Canadian music division.
HAS closed Monday's trading at $97.02, down $0.13 or 0.13%, on the NYSE. The stock, however, gained $1.31 or 1.35%, in the after-hours trading.
Copyright RTT News/dpa-AFX
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