Hasbro, Inc. announced on Monday April 26 that it had entered into a definitive agreement to sell entertainment music (eOne Music) for an aggregate prize of US$385 million in cash. The transaction has been approved by the Board of Directors of Hasbro and One Canada Entertainment Limitedand is subject to customary closing conditions and receipt of regulatory approvals. eOne Music will be acquired by entities controlled by black stonewhich also has SESAC, a leading music rights organization. Following the closing of the transaction, eOne Music will operate as a separate business unit led by its current global president, a music industry veteran Chris Taylor, and will focus on building a creator-driven music brand with global scale and expertise. Purchased by Hasbro in 2019 as part of its acquisition of Entertainment One, eOne Music is a leading independent music company.
eOnemusical assets of include recordings of Ace Frehley, THE BLACK BRAND SOCIETY and POP BAD.
Brian Goldner, Hasbrosaid, “This transaction will ensure that eOne Music is well positioned to unlock great opportunities for its many talented artists and partners, such as Hasbro continues to focus on the core strategic elements of our brand plan to further strengthen our position as a purpose-driven games and entertainment company. On behalf of the Board of Directors and Hasbro management, I would like to acknowledge the strong leadership of Chris Taylor and the whole eOne Music organization.”
taylor said: “I am thrilled to continue to lead and grow this exceptional company. We want the creative community to know that we strive to ensure this only benefits them and the work we do together. I would also like to thank Brian Goldner and Hasbro for their support and partnership.”
Hasbro intends to use the net proceeds of the sale to accelerate deleveraging and other general corporate purposes.
As part of the transaction, One Canada Entertainment Limited will sell the Canadian music division.
Subject to customary closing conditions and receipt of regulatory approvals, the transaction is expected to close in the second or third quarter of 2021.
eOne generates about $120 million in annual revenue, according to the company’s 2019 financial report. The music operation began in 1987 as Koch Entertainmentwith the founder Michael Koch selling the company in 2005 to Row Entertainment Income Fund for about $80 million. The fund then changed its name to become Entertainment One Income Fund then simply Entertainment One.