Amid an ongoing puppet battle with activist investor Alta Fox Capital Management, Hasbro’s board of directors has focused on acquiring original entertainment content from the toy maker. pepa pig Studio Entertainment One in 2019.
Activist investor Alta Fox has urged Hasbro to ditch its games division to increase shareholder value, a strategy the toy maker has advised shareholders to oppose.
“Our board has shown its commitment to exploring all options for value creation. For example, while the timing of our acquisition of eOne was unfortunate given the devastating industry-wide impact of the COVID-19 pandemic on television and film production and film distribution as part of our ongoing review of unlocking options of value to shareholders, the Board approved. “Sell the eOne music business, which was not our core brand strategy, while retaining valuable strategic assets,” Hasbro’s board said in a letter to shareholders on Monday.
The latest proposal comes ahead of a June 8 shareholder meeting where Hasbro is asking investors to vote on Alta Fox’s five CEO candidates. Monday’s call to investors also contradicts an earlier letter dated June 4. directly and instead spoke with the entertainment department as part of the toy maker’s broader game growth strategy.
eOne was acquired by Hasbro for $4 billion in 2019, primarily because of the synergies offered by its successful film and television series, which includes hits such as pepa pig s pj masks. At the time, Hasbro was seeking a deal with eOne to turn the toymaker’s media into a competitor by combining an independent studio’s film and television unit with its own.
But the pandemic changed that media strategy by shutting down industry production in early 2020. And following the death of CEO Brian Goldner, Chris Cox became the CEO of Hasbro’s Wizards of the Coast and Digital Games division and the COO whose success caught the attention of Alta Fox.
On Monday, Hasbro’s board reiterated that the dismantling of the toy division was not necessary to reveal the value of the shares to the toy maker. “Our focus on major strategic investments is evident in our recent decision to acquire the D&D Beyond,” the company said after recently acquiring the D&D Beyond, a digital device for the gaming giant’s fantastic Dungeons & Dragons franchise players for $14. , Fandom for a million dollars. cash.
“This acquisition will likely accelerate our growth in games and directly to consumers, and is in line with Chris and the board’s focus on disciplined capital allocation. “The investment decision took place after a disciplined evaluation of its impact on growth and profitability, strategic value, synergy capacity and projected investment return”, wrote Hasbro’s directory to shareholders in a letter Monday.
Source: Hollywood Reporter
Camila Luna is a writer at Gossipify, where she covers the latest movies and television series. With a passion for all things entertainment, Camila brings her unique perspective to her writing and offers readers an inside look at the industry. Camila is a graduate from the University of California, Los Angeles (UCLA) with a degree in English and is also a avid movie watcher.
