How Hasbro Stays Relevant
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There was a time when the word "game" invoked the image of children playing cards quietly around a table, or perhaps fetching a dusty chess set from under the stairs. Nowadays, it refers to high-octane digital epics with budgets (and revenues) to rival, or indeed surpass, Hollywood blockbusters. The new gaming landscape is dominated by cool and glamorous companies such as Take-Two Interactive and Activision Blizzard. While the older industry of toys and board games may not be as obviously exciting, it has shown remarkable resilience in the face of these highly addictive new technologies. No company demonstrates this ability to remain relevant despite the odds better than Hasbro (NASDAQ: HAS).
A couple of weeks ago, Hasbro made headlines when it purchased Entertainment One in a $4 billion all-cash deal. The deal gives the company access to a number of valuable brands, most notably the children's character Peppa Pig and, funnily enough, Death Row Records. It was the latest episode in the toy maker's long history of partnering with the most iconic names in the entertainment industry. Its portfolio now includes the Star Wars, Frozen, Marvel, and Fortnite brands. More interesting, though, is the company's exceptional ability to keep its older, more traditional lineup of products relevant in a world of virtual reality and billion-dollar franchises.
Source Fool.com
