Toymaker Hasbro buys into TV with Discovery

Toymaker Hasbro is paying USD300m to join a joint venture with Discovery Communications, which will revamp and replace Discovery's existing Discovery Kids TV channel. The new venture, which has yet to be named, will pool Hasbro's popular brands such as My Little Pony and Transformers with Discovery Kids shows such as Bindi the Jungle Girl.

Hasbro hopes to increase the visibility of its various toy brands through the venture, with some saying the firm hopes to reinvent itself as a provider of kids’ digital content. It will also offer desirable marketing opportunities for Hasbro’s existing products. For Discovery, the motive seems to be gaining strong backing for its TV network. The firm has a partnership with YouTube, announced in September, to run nine channels showing Discovery content. This deal extended a partnership established in 2006.

The Hasbro-Discovery venture is due to launch in 2010, combining a TV network with a website. Until then, the network will continue to operate as Discovery Kids.