Hasbro Feb. 11 disclosed it has completed its $3.8 billion acquisition of Entertainment One Ltd. (eOne). The game manufacturer’s financial results for the fourth quarter and full-year 2019 (ended Dec. 31) do not include the results of eOne, but were impacted by acquisition financing, foreign-exchange hedges and other activities associated with the deal.
The agreement aims to accelerate Hasbro’s brand portfolio with eOne’s global preschool brands, TV and film catalog (i.e. “Transformers,” “G.I. Joe,” etc.).
“The acquisition … significantly expands our expertise and capabilities as a global play and entertainment company,” CEO Brian Goldner said in a statement. “Our teams are actively engaged to unlock value across our organization — in gaming, in toys, in consumer products and in entertainment.”
Costs associated with the transaction included $17.8 million of eOne acquisition-related costs for the fourth quarter and full-year 2019.
Full-year 2019 entertainment, licensing and digital segment net revenue increased 22% to $434.5 million, compared with $356.3 million in 2018.
Revenue included Hasbro’s share of from the Bumblebee movie, including home entertainment, consumer products revenue and higher digital gaming licensing revenue. This was partly offset by lower digital streaming revenue versus 2018’s multiyear digital streaming deal for Hasbro television programming.
Hasbro legacy gaming revenue decreased 10% to $709.8 million. Revenue gains from “Dungeons & Dragons” and several classic games titles were more than offset by declines in other games, including Pie Face and Speak Out. Hasbro gaming revenue decreased in all three operating segments.