Hasbro's decision on what to do with its 40% stake on Discovery Family

[FirePuppy 735]

"Hasbro, Inc. ("Hasbro") has the right to put the entirety of its remaining 40% interest in Discovery Family to Discovery at any time during the one-year period beginning December 31, 2021, or in the event a Discovery performance obligation related to Discovery Family is not met. Embedded in the redeemable noncontrolling interest is also a Discovery call right that is exercisable for one year after December 31, 2021. Upon the exercise of the put or call options, the price to be paid for the redeemable noncontrolling interest is a function of the then-current fair market value of the redeemable noncontrolling interest, to which certain discounts and floor values may apply in specified situations depending upon the party exercising the put or call and the basis for the exercise of the put or call."

But then early in 2022, after the license was supposed to expire, but apparently, did not...

"Toy maker Hasbro is “evaluating” whether to offload its 40 percent stake in Discovery Family Channel. Hasbro CFO Deborah Thomas, as she discussed the future of the Discovery Family Channel stake during an analyst call, pointed to the impact of accelerating changes in the cable distribution industry, including a decline in linear TV subscribers. As more TV viewers migrate to streaming platforms and other digital alternatives, Thomas pointed to a possible sale or another strategic alternative for the Discovery Family Channel stake."

Then another year later...

"In connection with the amendment, the Company and Discovery entered into an option agreement related to the Company's remaining 40% ownership in the Network, initially exercisable during the one-year period following December 31, 2021. During 2022, the Company and Discovery agreed to extend the option exercise window to March 31, 2025."

Why did Hasbro make this unusual decision, and how does it affect the MLP fans?

Sources:
http://web.archive.org/web/20200514145649/http://ir.corporate.discovery.com/static-files/6fbe26f7-5bde-4bba-ac85-4c8d25baa659
https://www.hollywoodreporter.com/business/business-news/hasbro-mulls-possible-sale-of-discovery-family-channel-stake-1235088026/
https://www.marketscreener.com/quote/stock/HASBRO-INC-12874/news/HASBRO-INC-Management-s-Discussion-and-Analysis-of-Financial-Condition-and-Results-of-Operations-43057014/

Edited August 31, 2023 by FirePuppy

[Comp 173]

Let's be honest. Like SpongeBob with Nickelodeon, MLP:FiM is the marquee program for network, even post-Hub. They still air it and Pony Life often. Hasbro probably wants to keep that option open to milk as much revenue as it can for G4 toys and products as they continue to sell them for the foreseeable future.

[Steve Piranha 29,425]

17 hours ago, Comp said:

Let's be honest. Like SpongeBob with Nickelodeon, MLP:FiM is the marquee program for network, even post-Hub. They still air it and Pony Life often. Hasbro probably wants to keep that option open to milk as much revenue as it can for G4 toys and products as they continue to sell them for the foreseeable future.

Where are my G4 horses then ?

[FirePuppy 735]

On 2023-08-31 at 11:58 PM, Comp said:

Let's be honest. Like SpongeBob with Nickelodeon, MLP:FiM is the marquee program for network, even post-Hub. They still air it and Pony Life often. Hasbro probably wants to keep that option open to milk as much revenue as it can for G4 toys and products as they continue to sell them for the foreseeable future.

Not to mention that several of Hasbro's shows (including My Little Pony: Friendship is Magic) are all now the oldest programs still airing on Discovery Family.