April 5, 1996 in Nation/World

Mickey, Barbie Renew Their Vows

Bloomberg Business News
 

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.


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