Entertainment One Ditches Sale Plan

Shares for the Canadian film and TV production and distribution company, listed on the UK stock exchange, fell more than 16% today after it announced that it is “no longer considering the outright sale of the business.” The owner of popular children’s series Peppa Pig, and UK distributor of movies including the Twilight series,  said that offers made since the fall “do not adequately reflect the company’s value.” Analysts thought the company could fetch more than $600M. With a sale off the table for now, Entertainment One adds that advisors Credit Suisse and J.P. Morgan are weighing “a number of acquisition opportunities.” Although the company did not issue a full earnings report, it says that its cash flow margins for all of 2011 increased 100% mostly from licensing deals with digital distributors such as Lovefilm.  In addition, film revenues for the nine months ending in December were up 15%.

This article was printed from https://deadline.com/2012/02/entertainment-one-ditches-sale-plan-230185/