California-based toy maker Mattel Inc. (NASDAQ:MAT) confirmed Tuesday that it has won the key toy license for the Jurassic World property beginning in the summer of 2017. The company says that under the deal, it will be able to market toys and other consumer products inspired by the franchise and its many feature films, as well as an upcoming sequel that’s planned for 2018. The license had been previously owned by rival toy maker, Hasbro (NASDAQ:HAS)
Mattel sees the gaining of the license as a key victory, as Jurassic World was the second highest grossing movie in 2015 after Star Wars: The Force Awakens. According to Hasbro, the property generates about $100 million in sales in years when a feature film hits the box office. That figure drops however, by 50% in years where there is not a feature film. This, according to Hasbro, underscores just how important movie and TV content is to the sales of toys.
Hasbro and Mattel often find themselves competing against one another for the rights to different products and franchises. Earlier this year, Hasbro won rights to the Disney (NYSE:DIS) Princesses, which previously had generated $440 million in annual revenue for Mattel. Hasbro announced yesterday that it had terminated its contract with Comcast Corp.’s (NASDAQ:CMCSA) NBC Universal Studios due to disagreement over terms, providing the opportunity for Mattel.
Bottom Line
Mattel is set to report its second quarter results tomorrow, Wednesday July 20th, though obviously this deal won’t really have an effect on the company until 2018, when the sequel to Jurassic World is set to be released. Mattel is currently a Zacks Rank #3 (Hold), and shares of the company are up more than 19% year-to-date.
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