) extended its multi-year agreement with Warner Bros. Consumer
Products which licenses the rights for all the intellectual
properties in Warner Bros. Entertainment's film and television
network. Warner Bros. Entertainment is an American producer of
film, television and music entertainment and is a subsidiary of one
of the largest media and entertainment conglomerates,
Time Warner Inc.
The extension of the 15-year deal grants Mattel the permission to
broaden its toy offerings based on popular DC Comics characters
such as Batman and Superman. Under the deal, Mattel also secured
the rights to produce toys for upcoming DC Comics films, animation
and television projects. This deal will enable Mattel to
manufacture toys across all its core brands including Hot Wheels,
Matchbox, Barbie, Mattel Games and Fisher-Price.
The deal will script a turnaround for Mattel which has been
suffering from declining sales due to weakness in its famous
Barbie, Hot Wheels and Matchbox brands. In fact, the toy industry,
of late, has been witnessing a general decline in demand as
macroeconomic uncertainty and children's shift toward videogames
and personal electronic devices for entertainment have negatively
However, toys related to popular movie franchisees have generally
been successful. In fact,
) outshone other toymakers due to strategic agreement with
The Walt Disney Company
) related to its Star Wars, Avengers and Spiderman brands. Mattel's
extension of the agreement with Warner Bros. will place it in a
position to cash in on the immense demand for superhero toys, in
Mattel, currently, carries a Zacks Rank #4 (Sell).
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