Hasbro strengthens ties with Discovery Communications, LLC and Discovery Communications, Inc.
Hasbro, Inc., Discovery Communications, LLC and Discovery’s parent, Discovery Communications, Inc., has strengthened their relationship with respect to HUB Television Networks LLC, their cable television joint venture that operates the US HUB Network.
Before, Hasbro and Discovery owned a 50% equity interest in the Network. And due to these amendments Discovery has increased its equity interest in the Network to 60%, and Hasbro retains a 40% equity interest in HUB. The new developments in equity interests were accomplished through redemption of interests owned by Hasbro and through the purchase of interests by Discovery from Hasbro. And this reduction in its equity ownership Hasbro was paid a cash purchase price of $64.4 million by Discovery.
Discovery Group President Henry Schleiff, Tom Cosgrove will assume the role of general manager of the Network due to these updates. On September 25, 2014 Discovery and Hasbro has presented a press release that formatted their plans to rebrand the Network as the Discovery Family Channel which will be effective on October 13, 2014.
The new Discovery Family Channel will provide a variety of children’s programming during the day, and this includes both existing Hasbro programming and new programming to be produced by Hasbro Studios. Along with these new programming lineup during prime time the Network will serve its growing family audience with programming that are taken from Discovery’s other networks and library.
Under the amended arrangement Hasbro has a deal to provide specified numbers of hours of new programming that are produced by Hasbro Studios to the Network on an annual basis. This is in exchange for a license fee from the Network. Discovery will make content available to the Network from Discovery’s library and other Discovery channels. New channels and shows will be aired in prime time in exchange for a license fee from the Network.
More on the amended agreement among companies, reports also mentioned the following: the amended joint venture is terminable in certain circumstances. Hasbro can put its interest in the Network to Discovery if (i) Discovery materially breaches certain provisions of the agreements between the parties, (ii) Discovery acquires an interest in a competitive network or (iii) Hasbro elects to require Discovery to purchase its interest in the Network during the one year period following December 31, 2021. Discovery can call Hasbro’s interest in the Network if (i) Hasbro materially breaches certain provisions of the agreements between the parties, (ii) Hasbro acquires an interest in a competitive network or (iii) Discovery elects to purchase Hasbro’s interest during the one-year period following December 31, 2021.
More on Hasbro, Discovery Channel, LLC and Discovery Channel, Inc. amended agreement as the companies release more information to the public.
A.L. Mijares
About Hasbro
Hasbro Inc. is an American multinational toy and board game company. It is considered one of the largest toy makers in the world. Hasbro has corporate headquarters in Pawtucket, Rhode Island. The majority of its products are manufactured in East Asia. Outside Asia, Hasbro owns and operates only two manufacturing facilities, one in Waterford, Ireland, the other in East Longmeadow, Massachusetts, USA. In recent years, Hasbro has cut jobs at both plants in response to increasing competition from lower cost locations in China. At the end of 2006, for example, Hasbro’s Irish division laid off more than one third of its workforce Hasbro stock market evolution:
http://www.nasdaq.com/symbol/has/stock-report
About Discovery Channel Communications
Discovery Communications, Inc. is an American global mass media and entertainment company that is headquartered in Silver Spring, Maryland. The company began as a single channel in 1985, The Discovery Channel. Today, Discovery Communications is the world’s #1 pay-TV programmer reaching nearly 3 billion cumulative subscribers in more than 220 countries and territories all around the globe. Discovery is a company that is dedicated to satisfying audience curiosity by delivering engaging and entertaining content as well as high-quality content on worldwide television networks, led by Discovery Channel, TLC, Animal Planet, Investigation Discovery and Science, as well as U.S. joint venture network OWN: Oprah Winfrey Network. Aside from these channels and networks Discovery also controls Eurosport International which is a premier sports entertainment group along with six pay-TV network brands across Europe and Asia.
Discovery mentioned in the deal that Erosport’s brands and businesses would benefit from Discovery’s goals as well as local expertise and global Platforms while Eurosport provides Discovery additional reach and scale along with increased investment in interesting content that would create new value for advertisers, affiliates and audiences across Europe and Asia.
Aside from these ventures, Discovery is also a top provider of educational products and services to schools, including an award-winning series of K-12 digital textbooks, through Discovery Education, and a digital leader with a diversified online portfolio, including Discovery Digital Networks. Discovery Communications stock market evolution:
http://finance.yahoo.com/q?s=DISCA
