Toymaker bags profitable Peppa Pig
● US toymaker Hasbro has announced it is acquiring studio Entertainment One, which owns popular cartoon series Peppa Pig among other children’s content, for about $4bn (R60.7bn).
In addition to Peppa Pig, the pink swine with a British accent who loves jumping in muddy puddles, the purchase includes the successful children’s cartoon PJ Masks, about a trio of young friends who become superheroes at night.
“The acquisition of highly profitable and merchandisable preschool brands is a strategic growth opportunity for Hasbro,” the company said.
Hasbro is also banking on another Entertainment One character, Ricky Zoom, a little red rescue bike that has a “unique storyline with highly merchandisable content”. The cartoon will be launched next month.
The Hasbro acquisition will likely benefit both companies, said Russ Mold, an analyst at investment platform AJ Bell.
“Hasbro knows how to best exploit a brand by selling any type of product and is the perfect owner for Entertainment One,” he said.
The move also illustrates the rising interest in acquiring British companies that have become all the more attractive as the pound weakens amid fears about Brexit.
“It would not be surprising to see Amazon or Netflix set their sights” on Entertainment One, given its catalogue, said Mold.
But he added that “the most logical would be a counter-offer from Disney that has a share in the brand PJ Masks”.