Mattel Signs Licensing Deal With Disney

Mattel Inc. (MAT, Financial) has signed a multi-year global licensing agreement for the Disney (DIS, Financial) Princess and Frozen franchises, the company announced yesterday. This means Mattel will now have the global licensing rights to develop these lines of toys for Disney Consumer Products, Games and Publishing, including fashion dolls, small dolls and figures. The collection is expected to launch at retailers around the globe at the beginning of 2023.

After jumping by more than 8% on news of the deal, Mattel stock slipped backward. At the market’s close on Wednesday, the toymaker’s stock was trading at $20.46 per share, a gain of 85 cents per share, or 4.33%. By Thursday morning, shares were down another 2.35%, giving up most of their gains from the positive news.

“We are incredibly proud to welcome back the Disney Princess and Frozen lines to Mattel,” said Richard Dickson, President and Chief Operating Officer of Mattel, the owner of one of the strongest catalogs of children’s and family entertainment franchises in the world. “As the worldwide leader in dolls, we look forward to bringing our unique Mattel Playbook approach to brand management, product and marketing expertise, and unrelenting attention to detail and quality to create innovative and inspiring lines for these iconic stories and characters.”

The new licensing arrangement builds on the existing licensing relationship between Mattel and Disney for Pixar Animation Studio’s Toy Story and Cars franchises, and the recently announced global licensing agreement for Lightyear, the company added.

The deal brings the characters back to their previous home. As the Wall Street Journal noted, “Mattel lost the license to Hasbro (HAS, Financial) in 2016, a financial and symbolic setback that precipitated a period of four chief executive officers at Mattel and compounding challenges as they tried to fill the $440 million hole from losing the business.”

“The courage and compassion found throughout our Disney Princess and Frozen stories and characters continue to inspire fans around the globe,” said Stephanie Young, President of Disney Consumer Products, Games and Publishing. “By furthering our longstanding relationship with Mattel, we look forward to expanding the worlds of Disney Princess and Frozen, introducing an innovative new era of these beloved franchises through captivating products and play opportunities.”

Through the agreement, Mattel will develop dolls based on several Disney Princess titles, including Aladdin, Beauty and the Beast, Brave, Cinderella, The Little Mermaid, Mulan, Pocahontas, The Princess and the Frog, Sleeping Beauty, Snow White and the Seven Dwarfs, Tangled, Disney Frozen, The Little Mermaid Live Action, Moana D+ Series, Tiana D+ Series, Aladdin Live Action, Beauty & the Beast Live Action, Cinderella Live Action and Mulan Live Action.

Mattel’s portfolio of iconic brands already includes Barbie, Hot Wheels, Fisher-Price, American Girl, Thomas & Friends, UNO, Masters of the Universe and more.

Hasbro announced separately yesterday that it had renewed its deal with Disney's Lucasfilm studio to manufacture toys based on the Star Wars franchise. The company will also begin making toys based on Disney’s Indiana Jones franchise, whose fifth installment starring Harrison Ford is scheduled to arrive in movie theaters next year. In 2020, Hasbro extended its contract with Disney's Marvel Studios to create toys based on the many superheroes and villain who inhabit the Marvel Cinematic Universe.