Mattel wins back Disney Princess toys from Hasbro

Mattel Inc. shares gained after the company won back the license to produce toys based on Walt Disney Co.’s princesses and the “Frozen” movies. The second-largest U.S. toymaker announced a multiyear global licensing agreement with Disney on Wednesday and said it expects the new collection to go on sale at the beginning of 2023. The news is a homecoming of sorts for Mattel, which had lost the princess and “Frozen” rights to larger rival Hasbro Inc. in 2016. Toy sales have rebounded after tumbling early in the pandemic. Mattel, known for its Barbie and Fisher-Price brands, said in October that it expected full-year sales to increase by about 15%, up from an earlier forecast of 12% to 14%. “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,” said Richard Dickson, Mattel’s chief operating officer, in a statement. Subscribe to Ad Age now for award-winning news and insight. Morningstar analyst Jaime Katz said Mattel’s new deal, which was first reported by the Wall Street Journal, “signals restored goodwill with the storied Disney brands, which potentially opens up a wider set of license opportunities over time.” Mattel’s loss of the Disney license represented a fissure between the toy manufacturer and entertainment companies and contributed to a series of struggles that eroded the stock value in recent years. Hasbro didn’t respond to a request for comment about losing its rights to the princesses. The company said Wednesday that it has renewed its license for Disney’s “Star Wars” franchise and signed a new agreement with the filmmaker to develop “Indiana Jones” toys. “Mattel is executing at a higher level than Hasbro,” said Gerrick Johnson, an analyst at BMO Capital Markets, on Wednesday. “The roles have reversed.” Shares of Mattel rose 10% in afternoon trading, while Hasbro shares declined 2.7%. RSVP for Ad Age In-Depth: Unlocking the metaverse at AdAge.com/InDepthMetaverse. —Bloomberg News

Mattel wins back Disney Princess toys from Hasbro

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