Hasbro to sell eOne film and TV business to Lionsgate for$500 million and retire $400 million of floating-rate debt

Hasbro Inc.
HAS,
+1.73%
said Thursday it has agreed to sell its eOne film and TV business to Lionsgate for about $500 million, split between $375 million in cash and the assumption of production financing loans. The toy maker said it will use the proceeds to retire at least $400 million of floating-rate debt by year-end. The deal is expected to close by the end of 2023. The sale includes a content library of nearly 6,500 titles, active productions for non-Hasbro owned IP like he Rookie, Yellowjackets and Naked and Afraid franchises, and the eOne unscripted business, which will include rights for certain Hasbro-based shows like Play-Doh Squished, said Hasbro. The deal is part of th Hasbro’s recent strategic review which concluded with the aim of significantly increasing investment in Hasbro’s priority brands. The stock was slightly higher premarket, and is up 5.5% in the year to date, while the S&P 500
SPX,
-0.16%
has gained 18%.