Play and entertainment company Hasbro Inc. has agreed to sell Entertainment One Music (eOne Music), an independent music business, for an aggregate price of $385 million in cash. Hasbro is selling the business to entities that are controlled by Blackstone (BXMT), which also owns music rights organization SESAC.
Upon the closing of this transaction, eOne Music will function as a separate entity, led by its current Global President, Chris Taylor. The unit will focus on developing a creator-first brand that will have global reach and expertise.
Hasbro (HAS) Chairman and CEO Brian Goldner said, “This transaction will ensure that eOne Music is well positioned to unlock great opportunities for its many talented artists and partners, as Hasbro continues to focus on the core strategic elements of our Brand Blueprint to further strengthen our position as a purpose-led play and entertainment company.” (See Hasbro stock analysis on TipRanks)
Hasbro purchased eOne Music in 2019. It plans to use the proceeds from this transaction to pare down debt and for other corporate purposes.
On April 21, Berenberg Bank analyst David Beckel reiterated a Buy rating on the stock but did not assign any price target. Beckel believes Hasbro has emerged from the COVID-19 pandemic “stronger” and can grow revenue at a “healthy pace” despite difficult industry comps in 2021.
Overall, consensus among analysts is that Hasbro is a Moderate Buy, based on 5 Buys and 2 Holds. The average analyst price target of $106.33 implies upside potential of 9.6%. Shares have gained about 34% over the past year.
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