Entertainment One on Thursday confirmed it has secured overwhelming shareholder approval to allow Hasbro to complete its planned $4 billion all-cash takeover of the Canadian indie studio.
Entertainment One said 99.9 percent of its shareholders approved the deal, either in person or via a proxy vote, during a special shareholders meeting in Toronto. Hasbro will not hold its own special shareholders meeting to OK the transaction. The toy maker's board of directors has already voted to back the deal to acquire eOne.
In a statment, Brian Goldner, chairman and CEO of Hasbro, welcomed eOne shareholders' support for the deal: "Our two companies' strategies are remarkably complementary, as we both build brands, creativity and storytelling. Together with eOne's beloved global brands and expertise, we expect to leverage a combined portfolio with appeal to diverse audiences and consumers around the world."
"We are very much looking forward to capitalizing on the new opportunities this creates across film, television, music and family brands," eOne CEO Darren Throop added in his own statement about the proposed deal.
The merger, once completed, will hand Hasbro the Canadian studio's Peppa Pig and PJ Masks kids series and other top properties like Nickelodeon's Ricky Zoom. Under the terms of the deal, eOne shareholders will receive $6.80 in cash for each common share.
Entertainment One said certain regulatory approvals and other closing conditions need to be secured before the transaction can be completed.
Hasbro, the toy maker behind behind My Little Pony and Play-Doh, expects nabbing eOne will allow the company to drive new licensing revenues from newly acquired family brands, like Peppa Pig, and to develop non-core IP not part of the separate long-term deal with Paramount to jointly finance projects that the Hollywood studio distributes worldwide.