U.K. Competition Watchdog to Examine Hasbro’s $4 Billion Deal for Entertainment One

Stewart Clarke

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Britain’s competition watchdog will investigate Hasbro’s $4 billion takeover of Entertainment One.

The Competition and Markets Authority said Thursday that it would examine whether the intended acquisition of eOne would result in a “substantial lessening of competition” under U.K. rules. The CMA was deeply involved in scrutinizing the sale of Sky, which was ultimately bought by Comcast at an unusual auction.

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Toy giant Hasbro announced a surprise $4 billion all-cash deal for film and TV studio eOne in August. As well as movie and drama production and distribution, eOne owns the smash-hit kids’ property Peppa Pig.

When it announced the deal, Hasbro said that “the acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling, which will now include Hasbro’s IP.”

The CMA set out a timetable for its investigation. It will commence Friday and the body will announce whether the matter needs further examination – termed a Phase 2 investigation – by Jan. 21, 2020.

Hasbro has its own content unit, Allspark. The company’s TV properties include “Transformers Robots in Disguise,” and “My Little Pony: Friendship is Magic.” As well as “Peppa Pig,” the eOne roster of kids and family properties include “PJ Masks” and “Ben & Holly’s Little Kingdom.”

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