Hasbro CEO Talks 'Peppa Pig,' eOne Merger and Paramount Pact

Brian Goldner - H - 2019

Brian Goldner on Wednesday told an investors conference that the toymaker will drive new licensing revenues from newly acquired family brands like Peppa Pig, PJ Masks and Ricky Zoom.

Hasbro CEO Brian Goldner on Wednesday touted his recent acquisition of Canadian studio Entertainment One as part of a $4 billion all-cash transaction by the toy maker.

The deal hands over Hasbro eOne's kids series Peppa Pig and PJ Masks and other top properties like Nickelodeon's Ricky Zoom. "We have the family brands business, which have a number of notable pieces of entertainment," Goldner told the Goldman Sachs Communacopia Conference in New York City during a session that was webcast.

The exec talked about Hasbro continuing to exploit eOne's family brands business and eventually recapturing license fees paid to merchandising partners. "We will inbound all of those licenses over time as they expire. And we will look at those core categories of toys and games to see where we can make innovations," he said.

Goldner added that the toymaker has been approached over time to develop live-action series beyond younger-skewing animated content, and its new Canadian-based studio will help it do that. "eOne has the skill set as they've been using best practices to build a profitable film and TV business and the bulk of that is in TV," he said.

Goldner also outlined how Hasbro will secure around $130 million in synergies after acquiring eOne. Two-thirds of those cost savings will come from recovering the lost revenue from licensing fees paid out to partners and from combining two publicly listed companies with varied locations into one public entity.

The Hasbro CEO also touted an ongoing relationship with Paramount Pictures: "We've been excited and continue to be excited about executing on the priority projects we've identified — Bumblebee was one, and we have another G.I. Joe film, Snake-Eyes, coming out in the fall."

He continued: "Added to that, eOne, as they come in, have identified certain key properties they are also working in partnership with Paramount on."

eOne and Paramount recently struck a deal to co-finance the upcoming wide release of the Clifford the Big Red Dog movie.

"So it gives us an opportunity to get more bandwidth there. They're been priority projects identified, but we have many more brands in the vault than we've ever been able to touch as this deal clocks forward," Goldner said of eOne being used to develop non-core IP not part of the separate long-term deal with Paramount to jointly finance projects and the Hollywood studio distributing that content worldwide.