Topline
Mattel stock surged Wednesday morning after the company said it has won back rights to make toys based on Disney’s iconic princesses and characters from the hit movie Frozen after losing its licensing deal to rival Hasbro in 2016, which took a substantial bite out of its sales.
Mattel has won back rights for toy production for Disney's hit line of princesses and characters ... [+]
Key Facts
Mattel said Wednesday it has secured a multiyear licensing agreement to produce toys based on characters like Elsa and Anna from Frozen and from Disney’s lineup of princesses in titles Tangled, The Princess and the Frog and Aladdin, with products expected to hit shelves in early 2023.
The company’s shares jumped 9% to $21.40 Wednesday morning after the Wall Street Journal first reported the deal, while Hasbro stock slipped 1.6% to $94.05.
The deal represents a win for Mattel, which in 2015 booked $440 million in sales—7% of its total—on Disney princess products.
The loss of the contract to Hasbro was a major upset for Mattel, which has worked with Disney since the 1950s, when the company became the first sponsor for Disney’s Mickey Mouse Club show.
The Disney toys will be produced by Mattel’s doll division and overseen by the same team responsible for Barbie’s comeback, according to the Wall Street Journal.
Hasbro did not immediately return a Forbes request for comment.
Key Background
Losing the Disney rights in 2016 was a wake-up call for Mattel, CEO Ynon Kreiz told the Wall Street Journal. Since he took the top job in 2018, Kreiz has cut costs by more than $1 billion, brought in new leadership, restored important connections to Hollywood studios and revitalized Mattel’s biggest brands, including Hot Wheels, Fisher-Price and Barbie, the latter of which suffered slowing sales for years until making a major comeback in 2020. Before the deal was announced Wednesday, Mattel and Disney were already working together on toys for Pixar’s Toy Story and Cars franchises, and in October the two companies announced another licensing deal for the film Lightyear, which will be released this year.
Further Reading
Mattel Wins Disney Princess Toy Deal, Joining Elsa of ‘Frozen’ With Barbie (Forbes)
