By Jessica Toonkel
(Reuters) - Toy MakerHasbroInc has agreed to acquire children's Entertainmentand merchandising franchises, including the characters of the superhero TV show Power Rangers, from Saban Properties Llcin a deal valued at $522 million in cash and stock, the companies announced Tuesday.
The deal comes as Hasbro, which is the world's largest Toy Makerwith a stable of franchises including "My Little Pony," "Monopoly" and "The Transformers," seeks to reverse its losses following the bankruptcy last year of U.S. Toy RetailerToys R Us
In addition to making toys and action figures, Hasbroprofits from such franchises through the production of movies and TV series, allowing it to diversify its revenue beyond Retail Sales
The deal with Saban Properties was first reported by Reutersearlier on Tuesday.
Under the agreement, Hasbrowill launch its first set of products off the Saban franchises, which include Luna Petunia, Julius Jrand Popples, in 2019.
Launched as the "Mighty Morphin Power Rangers" live-action TV show in 1993, the franchise was created by Haim Saban, owner of Saban Properties.
The TV series gave rise to a line of action figures and other merchandise, plus three movies, including "Saban's Power Rangers" last year. The 2017 film, distributed by Lions Gate EntertainmentCorp, sold $142 million worth of tickets worldwide, according to Box Office Mojo.
Earlier this year, Hasbrosigned a deal with Saban for the Toy Makerto design, produce and bring to market a wide variety of toys and role-play items inspired by Power Rangers
Pawtucket, Rhode Island-based Hasbrohas taken several steps to boost its presence in the EntertainmentBusinessas a way to fuel toy sales.
The company operates HasbroStudios, which produces TV shows such as the Netflix Inc series, "Stretch Armstrong And The Flex Fighters"
The toy industry's traditional players have been undone in recent years by a shift toward thousands of rival, smaller producers selling on Amazonand other e-commerce sites, as well as kids' preference for electronic games over physical toys.
Last week, Hasbroreported a net loss attributable to the company of $112.5 million, or 90 cents per share, in the first quarter ended April 1, compared with a profit of $68.6 million, or 54 cents per share, a year earlier.
In 2014, Hasbroheld merger discussions with DreamWorks Animation SKG Inc, the studio behind "Shrek," but DreamWorks was subsequently bought by Comcast Corp.
Last year, the toymaker also held talks to acquire U.S. Moviestudio and Entertainmentcompany Lions Gate, but those negotiations broke down over price, sources said at the time.
Hasbrohas been seeking scale, and has attempted unsuccessfully to merge with peer Mattel Incover the years, most recently in 2017. Adding to the sense of crisis in the toy sector, Mattel appointed its fourth Chief Executivein three years last week.
J.p. Morgan Securities Llcserved as the Financial Adviserto Hasbro, according to the announcement.
(Reporting By Jessica Toonkelin New York; Additional reporting by Lisa Richwinein Los Angeles and Liana B. Baker and Greg Roumeliotis in New York; Editing by Bernadette Baumand Frances Kerry)
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)