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Thread: Hasbro Financial Earnings Reports (ongoing)

  1. #31
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    The latest quarterly report from Hasbro saw little movement overall, including Transformers which was still being propped up by residual income from the Bumblebee Movie still trickling back in to Hasbro. They are still in a good position though, despite trade war tensions and tariffs.

  2. #32
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    A recent acquisition by Hasbro is of the company "Entertainment One", for a massive £2.9 Billion (that's about US$3.8 Billion or AU$5.7 Billion).

    Yes, that's Billion with a "B".... and it was apparently an all cash purchase, so Hasbro has been building a fairly big warchest in recent years from their very healthy financial reports.

    Hopefully it didn't clean out the warchest, as this is a big risk for them, as Hasbro are looking to do more of their TV entertainment in-house, instead of paying others to produce it for them.... and we saw how their venture into cable television failed (the HUB channel in America), hoping to take on Disney and Nickelodeon with a dedicated channel to Hasbro toylines. And the collateral damage was the axing of the popular Animated series and toyline, so that HUB could be launched with something new (TFPrime).

    Hasbro's current value is somewhere between US$1.8 and US$5.3 Billion... so if they ended up purchasing a lemon, or the project doesn't generate a return, it could sink the parent company, as Hasbro relies on the stockmarket and it's fickle share traders to be valued as one of the biggest Toy Companies in the world (based on current share prices).

    PAWTUCKET, R.I.–(BUSINESS WIRE)–Dec. 30, 2019– Hasbro, Inc. (NASDAQ: HAS) today announced that it has completed its previously announced acquisition of Entertainment One Ltd. (eOne), adding beloved global brands and expanding storytelling through immersive entertainment experiences.
    “We are excited about what we can do together and see tremendous opportunity for shareholder value creation through this acquisition,” said Brian Goldner, Hasbro chairman and chief executive officer. “Our businesses are highly complementary with substantial synergies and a great cultural fit. The addition of eOne accelerates our blueprint strategy by expanding our brand portfolio with eOne’s beloved global preschool brands, adding proven TV and film expertise, and creating additional opportunities for long-term profitable growth. We are pleased to welcome the incredibly talented eOne team to our Company.”
    Darren Throop, president and chief executive officer of eOne, will report to Goldner. In addition, eOne’s Olivier Dumont, president, family & brands, Steve Bertram, president, film & television, and Chris Taylor, global president, music, will also be joining Hasbro, reporting to Throop.
    The all-cash transaction is valued at approximately £2.9 billion, based on the consideration of £5.60 per common share of eOne. Converted at a rate of 1.31 USD/GBP on December 30, 2019, the total cash consideration was approximately US$3.8 billion. Hasbro also expects to redeem eOne’s outstanding senior secured notes and to pay off the debt outstanding under eOne’s revolving credit facility, which together represent approximately £0.6 billion of eOne’s indebtedness.

  3. #33
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    Quote Originally Posted by griffin View Post
    A recent acquisition by Hasbro is of the company "Entertainment One", for a massive £2.9 Billion (that's about US$3.8 Billion or AU$5.7 Billion).

    Yes, that's Billion with a "B".... and it was apparently an all cash purchase, so Hasbro has been building a fairly big warchest in recent years from their very healthy financial reports.

    Hopefully it didn't clean out the warchest, as this is a big risk for them, as Hasbro are looking to do more of their TV entertainment in-house, instead of paying others to produce it for them.... and we saw how their venture into cable television failed (the HUB channel in America), hoping to take on Disney and Nickelodeon with a dedicated channel to Hasbro toylines. And the collateral damage was the axing of the popular Animated series and toyline, so that HUB could be launched with something new (TFPrime).

    Hasbro's current value is somewhere between US$1.8 and US$5.3 Billion... so if they ended up purchasing a lemon, or the project doesn't generate a return, it could sink the parent company, as Hasbro relies on the stockmarket and it's fickle share traders to be valued as one of the biggest Toy Companies in the world (based on current share prices).
    Thanks for posting this Griffin. I agree with your view that it is a big bet for the company. I would only clarify that Hasbro's "market value" based on the current share price is actually US$14.4b. I imagine your referring to value as in the "book value" of the company based on the last reported equity of US$1.8b? Indeed they do rely on the stockmarket valuation to some extent and are trading at very high multiples of both book value and earnings.

    It is a big bet for Hasbro because they are taking on a lot of debt in this transaction. They go from last reported net debt of around US$700m to around US$5b once the transaction closes. eOne doesn't generate a lot of profit which makes it even riskier for Hasbro if they can't monetise the assets.

    It's definitely worth watching. If Hasbro has indeed bitten off more than it can chew it could get into trouble. I dare say though that Disney would be waiting in the wings to snap it up if it got cheap enough. So the Transformers brand would live on in some way, shape or form.

  4. #34
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    Remember when we used to joke about Disney owning everything?
    As Count Dooku once said, this is just the beginning...

  5. #35
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    Quote Originally Posted by Sinnertwin View Post
    Remember when we used to joke about Disney owning everything?
    I just rewatched Howard the Duck (1986) recently, and noticed it was based on a Marvel IP produced by Lucasfilm. Who would've guessed that 30 years later, both belong to the House of Mouse.
    Last edited by High_Q; 3rd January 2020 at 12:39 PM.
    Recent Acquisitions: ReAction Optimus Prime
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  6. #36
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    I had no idea that Hasbro owned Peppa Pig or PJ Mask till I read that press release. The more you know. Shrugs

  7. #37
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    Quote Originally Posted by DELTAprime View Post
    I had no idea that Hasbro owned Peppa Pig or PJ Mask till I read that press release. The more you know. Shrugs
    Hasbro also owns gangster rap label Death Row Records.
    Recent Acquisitions: ReAction Optimus Prime
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  8. #38
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    Some news from Hasbro's recent purchase of Entertainment One, pretty much confirming the original intention of having them producing TV and film content based on Hasbro properties and licenses, quoting examples of Transformers, GIJoe, Power Rangers, Action Man and Dungeons & Dragons (and including an image of My Little Pony).

    TV content isn't expected until 2021, but this should mean that the current cartoons (Cyberverse and Rescue Bots Academy) are likely to be wrapped up this year, because they won't be wanting to keep paying the current production company, now that they have just paid a fortune for their own production company... and a new series will mean a new toyline to help push it (when it is usually a cartoon to push a toyline).

  9. #39
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    Looks like eOne will be tasked with producing music for Hasbro shows and films as well. Pretty much everything audio-visual it seems.
    Considering how much they spent on the business, they need to squeeze everything out of it as they can.

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