Walt Disney Co. has sold Mattel Inc. worldwide rights to make toys based on the entertainment company’s future films and television programs, significantly expanding their eight-year licensing arrangement.
Specific terms of the tentative licensing agreement weren’t released. Disney, though, will receive warrants to purchase 3 million shares of Mattel common stock at an undisclosed price, the toy maker said.
A broader alliance with Hollywood’s largest film studio could be a boon for the world’s largest toy maker.
The license covers categories including all dolls, plush products, male action figures, vehicles and battery-powered ride-on toys worldwide and games and puzzles within the U.S.
Sales of Disney-related products accounted for about $450 million, or 12 percent, of Mattel’s revenue last year, making it Mattel’s third-largest toy line.
“Anytime you can solidify a relationship with one of the premier producers of new product, it speaks very well for your marketing abilities,” said analyst Hunter Hallowell at Dresdner Securities.