Entertainment One/Hasbro: is Peppa the most valuable pig in history?
“She has been censored in China for stirring up insubordination and chastised in the UK for sexism and promoting unhealthy food.” But Peppa Pig has taken the City by storm – and now she’s “gone to market”, said Michael O’Dwyer in The Daily Telegraph. Hasbro, the US toy giant, has tabled a £3.3bn bid for the porcine cartoon character’s owner, Entertainment One, demonstrating that “child’s play” is “a serious business” for investors. On news of the deal, shares in the London-listed film and TV company jumped by more than a quarter amid speculation of a rival offer. Even without one, Hasbro’s swoop would still rank “among the ten biggest global media deals of the year”.
Talk about “bringing home the bacon” for eOne, said Lex in the Financial Times. Still, Peppa and her chums would clearly be useful assets to Hasbro. “In an age of screen-obsessed children, toymakers know hits can help fuel sales.” Hasbro has been forging closer ties with Hollywood to bring some of its brands, including Transformers, to screens. The acquisition of eOne, with its growing production arm, would “make it an even bigger player in the lucrative children’s entertainment market”. The chief worry for Hasbro, given intensifying demand for original content in a crowded streaming market, is that “others may be looking to pig out on Peppa too”.
According to Linda Sullivan of Cavendish Corporate Finance, Peppa may be “the most valuable pig in history”. Even so, with the pound at a two-year low, London-listed eOne looks like a bargain for overseas buyers. It’s not the first and it won’t be the last, said Russell Lynch in the London Evening Standard. Dealogic records that so far this year overseas bidders have put in £52.1bn of £94.7bn spent in total on UK firms.