Roughly three months after Hasbro (NASDAQ:HAS) closed its $3.8-billion acquisition of Entertainment One, the pandemic struck, upending the entertainment industry.
COVID shut down production and restricted in-person contact between the Rhode Island-based toy company and the Toronto-based studio known for "Peppa Pig" and "PJ Masks."
Although Hasbro has more than tripled the number of entertainment projects it has in the works over the past year, the company has yet to fully tap into eOne’s abilities as a production house.
The tie-up promised to transform Hasbro from a toy manufacturer that dabbled in film and television into a full-blown media competitor, with the power to produce and distribute content globally. In a meeting with investors Thursday, Hasbro is expected to reveal more of its entertainment plans.
While eOne’s revenue fell in 2020, its fourth-quarter earnings offered a positive sign for the future. Hasbro’s TV, film and entertainment segment notched a 20% bump, with revenue reaching $214.5 million, as the company completed some projects and monetized them with its TV partners. Still, like many others in the industry, it was forced to cut costs, and recently laid off 10% of its film and TV staff, or about 60 people.
Hasbro’s stock has fallen from a 52-week high of $101.24 set in mid-January. The stock closed Wednesday at $90.91, down about 2.8% since the start of the year, and up only 4.4% over the past year, giving it a market value of about $12.46 billion. Shares opened Thursday down $1.27, or 1.4%, to $89.64
