Lionsgate enhances content library through $375m eOne acquisition

Lionsgate (NYSE: LGF.A, LGF.B) has officially closed its acquisition of the global entertainment platform eOne from Hasbro. The deal, valued at $375 million in cash plus the assumption of production financing loans, marks a significant expansion for Lionsgate in the entertainment sector.

Expanding Lionsgate’s Entertainment Library

This acquisition significantly bolsters Lionsgate’s already vast film and television library, adding 6,500 titles and making it one of the largest and most valuable in the world. The move diversifies Lionsgate’s portfolio in both scripted and unscripted television sectors and extends its range of brands and franchises.

eOne’s High-Profile Productions

eOne is known for producing several high-profile shows, including the hit ABC franchise “The Rookie,” the critically-acclaimed Showtime series “Yellowjackets,” and the long-running Discovery unscripted series “Naked & Afraid.” Additionally, the transaction includes film development rights to Hasbro’s iconic Monopoly brand.

Statement from Lionsgate CEO

Lionsgate CEO Jon Feltheimer expressed his enthusiasm for the acquisition: “The eOne acquisition concludes a busy year in which we continued to execute our strategy of strengthening our studio business as we prepare for the separation of Lionsgate and STARZ into pure play standalone companies. As we’ve conducted our integration planning, our analysis has reaffirmed our conviction that eOne will be a valuable and highly accretive addition to our business. We are pleased to welcome eOne’s talented group of employees to our Lionsgate family.”

Advisory Firms for the Transaction

Jefferies & Co., Sheppard Mullin, and Denton’s Canada LLP were the advisory firms for Lionsgate in this transaction.

Impact on the Entertainment Industry

The acquisition of eOne by Lionsgate is a move that significantly expands Lionsgate’s reach in the global entertainment industry. It strengthens its position in the market, particularly in Canada and the UK, where eOne has a substantial presence. This strategic move is expected to contribute to Lionsgate’s growth and diversity in content production, offering a wider array of films and TV shows to audiences worldwide.