Hasbro Inc. (NASDAQ:$HAS) is a U.S toy company that sells products ranging from board games such as Monopoly, to toys such as foam Nerf balls. Previously looking to acquire Lionsgate Entertainment Corp (NYSE:$LGF), news on Wednesday states that the talks have fallen apart, and the two companies are no longer in talks.

If the deal was successful, it would have improved Hasbro’s ability to produce movies, while diversifying its sources of revenue. Currently, the company produces content under Hasbro Studios, and has also worked with Viacom Inc’s (NASDAQ:$VIAB) Paramount Pictures on a handful of other projects such as “Transformers” and “G.I. Joe”.

The source, who asked not to be identified due to the talks being confidential in nature, noted that the negotiations ended last week due to large price gaps. As of right now, it is unclear whether the two companies will return to negotiations in the future.

Lionsgate declined to comment, while Hasbro did not provide an immediate response.

Shares of Lionsgate were trading at about $29.27 in the midday trading session, which implies a market value of $5.9 billion. However, Hasbro shares fell by 2% to about $103.76 in midday trading.

Had the deal gone through, Lionsgate would be the second media company Hasbro has added to its portfolio, after the toy company purchased U.S. television network Starz for $4.4 billion.

These deals for media companies were likely made with the intent of providing additional streams of revenue so the company is not so dependent on delivering blockbuster movies. An acquisition of Lionsgate would have meant the addition of the media studio behind movies such as “La La Land” and “The Hunger Games”, as well as a US television network with more than 30 million viewers.

MHR Fund Management LLC, a hedge fund in affiliation with Lionsgate Chairman Mark Rachesky, is the studio’s largest shareholder. John Malone, a media mogul, is also a reputable shareholder with a seat on the company’s board.

For the remainder of the year, Hasbro expects to release movies such as: “Star Wars: The Last Jedi,” “My Little Pony: The Movie,” and “Thor: Ragnarok.” Additionally, the studio is also due to release “My Little Pony” as its next feature film under the Allspark movie label.

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