Top American toy maker Hasbro has announced a deal to acquire the owner of popular children's series “Peppa Pig” Entertainment One (eOne) for approximately £3.3 billion (US$4 billion).

The share price of Canadian studio eOne, which trades on the London Stock Exchange, surged more than 30 percent on Friday, less than 24 hours after the takeover had been revealed.

Despite the prediction by the toy maker that the acquisition is set to improve its growth outlook and enhance long-term profitability, Hasbro’s stock price dipped in pre-market trading, losing around 4.5 percent.

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According to the terms of the agreement, eOne shareholders will receive £5.60 ($6.80) in cash for each common share. The deal is still subject to some regulatory approvals, but is expected to close during the fourth quarter of 2019.

“The acquisition of eOne adds beloved story-led global family brands that deliver strong operating returns to Hasbro’s portfolio and provides a pipeline of new brand creation driven by family-oriented storytelling,” Hasbro’s chairman and chief executive officer, Brian Goldner, said on Thursday.

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The widely known cartoon about pre-school character Peppa Pig has already evolved from a TV series into a multibillion dollar global brand, with its own merchandise and theme parks. The cartoon is broadcast in over 180 territories in over 40 languages.

The entertainment firm also owns other preschool audiovisual series such as “PJ Masks” and “Ricky Zoom,” with the latter set to be launched on Nickelodeon in the US and other top-tier global networks in September. Entertainment One also distributes films and some popular TV shows such as ‘The Walking Dead,’ among others.

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