Leading toy and game company Hasbro announced that it will sell its eOne film and TV business to Lionsgate for approximately $500 million.

Hasbro will use the proceeds to retire a minimum of $400 million of floating rate debt by the end of the year, and for other general corporate purposes. The transaction is expected to close by the end of 2023.

According to Hasbro, “The sale will include a talented team of employees, a content library of nearly 6,500 titles, active productions for non-Hasbro owned IP like The Rookie, Yellowjackets and Naked and Afraid franchises, and the eOne unscripted business, which will include rights for certain Hasbro-based shows like Play-Doh Squished.” The eOne film and TV business being sold also includes Hasbro’s interest in the Canadian film & TV operations of Entertainment One Canada.

Franchises like Peppa PigTransformers: EarthSparkMy Little Pony: Tell Your Tale, Play-Doh, GI Joe, Dungeons & Dragons, Transformers, its 30+ projects in development and its board game portfolio will remain with Hasbro.

“This sale fully aligns with our strategy, and we are pleased to bring the process to a successful close,” said Hasbro CEO Chris Cocks. “Lionsgate’s management team is experienced in entertainment and adept at driving value, and we’re glad to have found such a good home for our eOne film & TV business. We look forward to partnering with them, especially on a movie adaptation of Monopoly.”

Cocks continued, “Entertainment remains a priority for Hasbro. Hasbro will continue to develop and produce entertainment based on the rich vault of Hasbro-owned brands. We will also bring to life new original ideas designed to fuel all areas of Hasbro’s blueprint including toys, publishing, gaming, licensed consumer products, and location-based entertainment. As part of the sale, we expect to move to an asset-lite model for future live action entertainment, relying on licensing and partnerships with select co-productions.”