Hasbro Deal for Lions Gate Falls Through. Which Movie Studio Is Next?

Hasbro (NASDAQ: HAS) is 0-for-2 when it comes to buying big movie studios. Reuters recently revealed that the toy maker was in talks to buy Lions Gate Entertainment (NYSE: LGF-A)(NYSE: LGF-B), but the deal apparently fell apart over price. Similar to Hasbro's failed attempt to acquire DreamWorks Animation in 2014, which also went nowhere because of price, it shows the toy maker is serious about breaking into Hollywood.

Making toys is OK, but the real money is in movies, which can lead to higher toy sales. Owning a studio outright cuts out the middleman and allows Hasbro to keep more of the profits for itself. Still, it's a strategy fraught with risk and one Hasbro hasn't shown itself particularly adept at outside of the Transformers franchise, but since the toy maker seems intent on buying a studio.

Image source: Getty Images.

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Source: Fool.com