Hasbro 'to benefit' from Disney Star Wars deal - ToyNews

Hasbro 'to benefit' from Disney Star Wars deal

Company has rights to Star Wars toys until 2020; analyst looks at growth potential.
Author:
Publish date:
5_star-wars-hasbro.jpg

Toy giant Hasbro could benefit massively from Disney's recent buyout of Star Wars owner Lucasfilm.

The firm has held the official licence for Star Wars toys since 1991 and retains those rights until 2020.

Freshly announced movie Star Wars: Episode 7 launches in 2015, and Needham Research analyst Sean McGowan reckons this could be a huge bonus for Hasbro.

“We believe the deal could have significant benefit for Hasbro, which holds the rights to make a range of Star Wars toys through 2020," he said, as reported by Barron's.

"Star Wars has, over the past 35 years, been one of the toy industry’s most valuable franchises. There has not been a new full length live action feature since 2005, and in that year, Hasbro’s sales reached almost $500 million. Since then, sales have been steady, but lower.

"Disney plans to release Episode 7, an all new Star Wars film in 2015, and at least two additional Star Wars films after that. We believe this gives significantly greater visibility to Hasbro’s growth potential beyond 2014. We maintain our Hold rating based on near-term concerns, but acknowledge that a revived Star Wars franchise brightens the outlook considerably."

For our thoughts on Disney's $4 billion acquisition of Lucasfilm, read our opinion piece: The force is strong with Disney.

Want to receive up to the minute toy industry news straight to your inbox? Click here to sign up for the free ToyNews Daily Digest and Newsflash services. You can also follow ToyNews on Twitter and Facebook.

Related

Featured Jobs

Copyrights Group

Marketing Manager

The Copyrights Group is one of the licensing arms within The Vivendi Group. Acquired by Vivendi in 2016 Copyrights manages the licensing for a portfolio of properties to include Paddington Bear. Some of the other companies within the Vivendi Group include Universal Music Group, and their licensing arm Bravado, Gameloft and Studiocanal to name a few.