Mattel Inc won the rights to make Disney princess toys based on Disney royalty such as Elsa and Jasmine. Thereby, reclaiming a lucrative license from archrival Hasbro.
Mattel’s stock jumped 11% after the reunion while Hasbro fell.. It is a part of Chief Executive Ynon Kreiz’s plan to turn the company around by getting more involved in big entertainment properties.
Mattel would not disclose the financial terms of the agreement. It comes seven years after it lost the rights and will allow it to produce dolls based on the “Frozen” film franchise.
“This is a defining moment in our transformation,” Kriez said in an interview.
“This has been a key priority as part of our turnaround and we worked very hard to win it … the way we see it Disney Princess and Frozen are back home where they belong.”
Mattel refocused by revamping the Barbie brand, releasing new dolls with varying skin tones, professions, and attires that have struck a chord with a more diversified client base. Then, the toymaker has seen a comeback in sales.
Hasbro declined to comment. But said it had renewed its “Star Wars” licensing agreement with Disney-owned Lucasfilm. Also, it would resume production of “Indiana Jones”-themed toys.
By 2023, Mattel will begin selling Disney Princess toys. It will include dolls based on iconic films such as “Aladdin,” “Beauty and the Beast,” “Brave,” and “The Little Mermaid.”
The toymaker made similar agreements with Disney for Pixar Animation Studio’s “Toy Story,” “Cars,” and “Lightyear” franchises and “Lightyear.”