Hasbro Inc. isn’t just getting Peppa Pig in its $4 billion acquisition of Entertainment One. It’s also adding content creation capabilities and other valuable assets, according to MKM Partners.
Peppa Pig had $1.35 billion in retail sales in fiscal 2019, and PJ Masks, $1.15 billion. MKM thinks both brands have room for growth, especially in China. “[T]he acquisition bolsters Hasbro’s competitive positioning in the preschool category,” a significant market for the company, according to Stifel.
Hasbro shares were also down by 6.7% on Friday, though that stock has rallied 6.7% in the last 12 months.