Hasbro to Acquire
Wizards of the Coast Inc.

Gaming News & Press Releases

by Bill Brierton

Hasbro Inc., and Wizards of the Coast Inc., have announced that they have entered into a definite agreement from Hasbro to acquire Wizards of the Coast. The purchase price is approximately $325 million, subject to adjustment based on the audited net assets of Wizards of the Coast at closing, and certain contingent payment rights. The waiting period under the Hart-Scott-Rodino Antitrust Improvements Act has expired and the transaction is expected to be completed by the end of September.

"Wizards of the Coast will enable us to significantly expand the fast-growing games arena, which is a cornerstone of our growth strategy for the new millennium," said Alan G. Hassenfield, Chairman and CEO of Hasbro Inc. "This acquisition brings us not only incredibly popular content and exciting gaming initiatives, but also a visionary senior management team and creative talent, expanded distribution channels and an opportunity to participate in location-based entertainment. There is no end to the opportunities we see from cross-fertilization of our respective game portfolios, including the fast growing areas in interactive software and on-line gaming. Plus, the year round nature of these businesses will help to balance the seasonality of our diversified portfolio," Hassenfeld continued.

"We are very excited about this merger of the world's two greatest game companies," said Peter Adkison, President and CEO of Wizards of the Coast. "We are proud to become part of the Hasbro tradition and culture, and look forward to working together to build on the strength of Hasbro's rich library of intellectual properties," Adkison added.

Shareholders owning over two-thirds of the Wizards of the Coast outstanding shares, representing more than the required minimum approval, have agreed to vote their shares in favor of this merger at the shareholders meeting which is expected to take place on or about September 30,1999. Peter Adkison and his senior management team will continue to run Wizards of The Coast, which will remain based just outside Seattle. This transaction is expected to have no material impact on Hasbro's earnings per share in 1999 and to be accretive in the year 2000 and beyond.

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