Sep 24, 2014 1:02 PM
Hasbro freezes out Mattel with new Disney deal
The Associated Press
PAWTUCKET, R.I. (AP) The toy wars just got a bit colder thanks to Disney's "Frozen," with Hasbro wrestling the rights for dolls from the hit movie away from its rival Mattel.
Hasbro Inc. announced Wednesday that its new deal with Disney Consumer Products will give it global rights with the exception of Japan to develop dolls based on "Frozen."
The Pawtucket, Rhode Island-based toy company will also make dolls based on Disney Princess stories and characters including Cinderella, Beauty and The Beast and The Little Mermaid.
Disney Consumer Products spokeswoman Joss Hastings said in an interview that the rights for the "Frozen" dolls will shift from Mattel to Hasbro in the spring of 2016.
The Hasbro agreement will also include clothing and accessories for the dolls, she added.
Disney released "Frozen" in movie theaters in November 2013, and it has become the fifth-highest grossing film of all time.
It has spawned a hugely successful soundtrack, won Oscars and sent children clamoring to their parents for any toys or other products tied to it. While Disney had trouble keeping up with product demand last year, the company has since ramped up efforts to ensure that plenty of items are available for 2014's holiday shopping season and beyond.
Hasbro's new deal with Disney expands on their existing relationship, having already teamed up on "Star Wars" and Marvel properties. It will also strengthen Hasbro's position in the girls category, where it already has popular toys from brands such as My Little Pony and Nerf Rebelle.
Losing the rights to the "Frozen" dolls will be a blow to Mattel Inc. In July Chairman and CEO Bryan Stockton said during a conference call that the "star" in the second quarter was its "Frozen" product line and that it was "continuing to chase demand there." The popularity of the toys helped Mattel to offset weakness in Barbie sales, which dropped 15 percent in the quarter.
Mattel, based in El Segundo, California, did not immediately respond to an email seeking comment.
Hasbro's stock gained $2.28, or 4.3 percent, to $55.22 in afternoon trading. Shares of Mattel shed 51 cents to $31.56, while The Walt Disney Co.'s stock rose 64 cents to $88.95.