(Reuters) -Hasbro said on Thursday it would sell its eOne film and TV studio to Lionsgate Entertainment for about $500 million as part of the toymaker’s efforts to focus on more profitable brands.
The deal, which includes 6,500 titles such as “Yellowjackets”, “The Rookie”, has been approved by both companies’ boards and is expected to close by the end of 2023.
Hasbro said it would use the proceeds from the transaction to retire at least $400 million in debt by the end of the year, and for other corporate purposes.
Last November, Hasbro said it was looking to sell a part of eOne which it bought for $4 billion in 2019 amid a broader slowdown in the toy industry that forced the company to cut jobs and restructure its business.
Hasbro had then said children’s programme “Peppa Pig” was not part of the business it was putting up for sale.
The company is set to report its second-quarter resultslater in the day.
(Reporting by Savyata Mishra in BengaluruEditing by Vinay Dwivedi)