Discovery, Hasbro Team for Kids’, Family Network

SILVER SPRING: Discovery Communications is teaming with Hasbro for a children’s and family entertainment and educational service slated for a late 2010 launch, reaching 60 million U.S. homes in place of the Discovery Kids channel.

Hasbro will purchase a 50-percent stake in the venture, holding the assets related to Discovery Kids in the U.S., for $300 million. The 50/50 joint venture includes a TV network and website, as well as a minority interest in the U.S. version of Hasbro.com. The service will deliver content from Hasbro’s portfolio of brands, including animation, live-action series and specials and game shows. New programming will be based on brands such as Romper Room, Trivial Pursuit, Scrabble, Cranium, My Little Pony, G.I. Joe, Game of Life, Tonka and Transformers. The TV network and online presence also will include content from Discovery’s library of kids’ content, such as Bindi the Jungle Girl, Endurance, Tutenstein, Hi-5, Flight 29 Down and Peep and the Big Wide World, plus third-party acquired fare. The network, launching in the Discovery Kids slot toward the end of next year, will target boys and girls up to the age of 14. Discovery Communications will retain the Discovery Kids brand for its international networks and its licensing and merchandising business.

Discovery and Hasbro will have equal representation on a board of directors that will oversee a management team responsible for programming, scheduling and operations. The search for a president and general manager for the network will begin immediately. Discovery Communications will handle advertising sales services, distribution, origination and other operational requirements for the proposed venture, while Hasbro will provide studio-produced programming. Hasbro will make a separate investment to establish a team to create and produce the content.

"Hasbro continues to evolve as a company with an unwavering vision of reimagining the potential of our incredible portfolio of brands well beyond traditional toys and games," said Brian Goldner, Hasbro’s president and CEO. "Today, consumers are embracing our powerful brands through unique and immersive entertainment and educational experiences in a number of areas, including movies and new digital platforms. We believe the time is right for Hasbro to take the next step into television through our partnership with Discovery Communications. David Zaslav and his talented team have the experience, track record and ambition necessary to make this joint venture a long-term success as we build this network. We look forward to creating fun, stimulating and educational content that will allow us to deliver all-new brand experiences to the young and ‘young at heart’—anywhere and anytime they want."

David Zaslav, the president and CEO of Discovery Communications, added: "This joint venture reinforces Discovery’s strategy to develop strong brands, maximize the potential of our extensive distribution in the U.S. and work with the highest quality content partners to create long-term value. Brian Goldner and the dynamic management team at Hasbro have a long track record of developing well-respected quality brands that entertain and encourage creative play. The combined assets of both partners provide a compelling platform for building a trusted children’s destination that engages and enlightens a thirsty and growing audience."