Hasbro is effectively buying itself a stake in a new-look *Discovery* Kids, creating a 50-50 joint venture that will deliver family and kids TV and web content from late 2010.
While presented as a JV, Hasbro is actually buying its 50-percent stake by paying $300 million to Discovery (NSDQ: DISAB) Communications (NSDQ: DISCA). The new entity will continue to hold the Discovery Kids Network’s U.S. operations, but the pair say they will rebrand the network for the venture next year. There’s no name given yet, however, and Discovery Kids will continue to operate overseas. The JV will search for a president and general manager “immediately”, and Hasbro itself is also investing in building a new creative team to produce cartoons, live-action shows, game shows, digital and mobile content.
The deal is primarily about creating new TV distribution opportunities for Hasbro brands, but is referred to in the release as a “multi-platform initiative” that sees Discovery handed some control over Hasbro’s online efforts; the joint company will hold a minority interest in Hasbro.com. Details are limited today, but Discovery CEO David Zaslav, in the release, also says it’s about “delivering all-new brand experiences … anywhere and anytime (audiences) want,” suggesting an online/digital component including VOD and games.
The venture will pool archive and original Hasbro brands like Trivial Pursuit, My Little Pony, GI Joe and Transformers with Discovery kids shows like Bindi The Jungle Girl, Endurance and Tutenstein, “as well as programming from third-party producers”. Tapping the experience of the toy-maker, which has often conceived TV shows to help shift products off shelves, the venture will also execute “merchandising opportunities associated with on-air content”.