The sale of Entertainment One’s (eOne) film and TV business to Lionsgate is expected to close by the end of the year after receiving regulatory approvals, Hasbro said in its Q3 earnings report.

The deal, announced in August, will see Lionsgate acquire eOne’s film and TV assets for US$500 million, including US$375 million in cash. The sale is part of Hasbro’s strategy to refocus on its core toy brands.

Lionsgate will acquire Hasbro’s interest in eOne’s Canadian business, and the prodco’s catalogue of more than 6,500 hours of film and TV programs, which include Yellowjackets (pictured) and The Rookie and unscripted content such as the Naked and Afraid franchise, produced by eOne-owned Renegade83. Hasbro will hold onto IP gained in the eOne acquisition that supports its branded entertainment strategy, such as the Peppa Pig franchise.

The toy company announced a 10% dip in its Q3 results on Thursday, generating US$1.5 billion in global net revenue compared to US$1.67 billion in net revenue from the same period last year.

Hasbro’s entertainment segment was impacted the most in Q3, generating 42% less revenue at US$122 million. The company attributed the decline to the Writers Guild of America and Screen Actors Guild — American Federation of Television and Radio Artists strikes. Its consumer products also underperformed by 18% (US$956 million).

According to its Q3 report, Hasbro now expects its year-end revenue to decline by 13% to 15%, in light of softer toy-buying trends and bloated retail inventory levels that aren’t leaving much shelf space for new products.

With files from Cole Watson

Photo by Kailey Schwerman/Showtime