Hasbro Keeps WotC, Rejects ‘Spin-Off Proposal’
Wizards of the Coast will be staying on as Hasbro’s goose that lays the golden Magic: the Gathering egg after all.
Earlier this year, an “activist investor” with a 2.5% stake in Hasbro called for Wizards of the Coast to be spun off into a separate entity. The company, Alta Fox Capital Management, claimed that the move would cause a spike in share price. Alta Fox’ proposal has an accompanying video outlining their reasoning.
But, Hasbro has declined to take them up on their proposal. As Hasbro board chairman Rich Stoddart said in a letter last week:
“[A WotC spinoff] is unlikely to create value, is contrary to Hasbro’s strategy, and would negatively impact the benefits Wizards realizes today from Hasbro’s Brand Blueprint on a consolidated basis.”
Meanwhile, Hasbro’s new CEO Chris Cocks, formerly head of WotC, clarified that Wizards was the groundwork for Hasbro’s future.
“The fundamental game plan we used at Wizards will be the roadmap we follow for the rest of Hasbro.”
New Board, Who Dis?
But Alta Fox called for more than just a spinoff company. They also suggested a slew of new board members. However, Hasbro announced two new board members earlier this week, none of whom were in Alta Fox recommendations.
WotC added Elizabeth Hamren, Chief Operating Officer of Discord Inc., as well as Blake Jorgensen, Executive Vice President of Special Projects, and former Chief Financial Officer and Chief Operating Officer, at Electronic Arts Inc to their board of directors.
The move comes not long after Chris Cocks takes the reins of Hasbro. Hasbro is currently valued at $11.7 billion, and Wizards of the Coast makes up a not- insignificant portion of that. Earlier this year, Hasbrob reported that WotC brought in more than $1 billion in revenue for 2021, making it the largest tabletop company in the world.
And as we’ve seen, tabletop is only a part of the equation now. WotC’s new role as head of Hasbro’s digital aims will doubtless see them grow even faster in the coming years.
WotC and Hasbro seem poised to go very far indeed.
