It is expected to help Hasbro to curb its losses following the toy retailer Toys R Us’ bankruptcy in 2017. In the first quarter of 2018, Hasbro reported an operating loss of US$23.4 million compared with an operating profit of US$64.8 million a year earlier. Through the deal, Hasbro will be able to profit more from movies and TV series productions other than from its toy retailing by next year.
Hasbro’s total net revenues in 2017 rose by 3.6%, year-on-year to US$5.21 billion, driven by its well-known franchises including Monopoly and My Little Pony. The company started the year with a fall in its net revenue in the first quarter of 2018, totaled US$361.7 million compared with US$449.2 million a year earlier.
Hasbro also suffers from intense competition from small toy retailers from Amazon (NASDAQ: AMZN) and other online retailers, and the growing preference for e-games over physical toys. The company attempted to offset the impact by trying to merge with similar companies including Mattel Inc last year, but was unsuccessful.