Some very disturbing news broke yesterday that resulted in Mattel’s stock to take a huge dive. This news isn’t good considering the company already trimmed its workforce by 20% in July.
Toronto-based Spin Master Corp. will be the new licensee for DC in the boys’ action category, remote control and robotic vehicles, water toys, and games and puzzles, displacing El Segundo-based Mattel. The three-year global agreement with Warner Bros. begins in spring 2020. Mattel will keep some of its licensing rights, including for preschool and girls’ toys, Goldman analyst Michael Ng said in a note to clients.
Mattel shares, which were already trading at an 18-year low, dropped an additional 3.1% on Monday. The stock has lost nearly 40% of its value this year; the Standard & Poor’s 500 index, meanwhile, has lost about 12%.
So what does this mean? We reached out to Mattel for clarification, but since it is Christmas day, we may not hear from them for a couple of days.
From what I am reading (KEEP IN MIND THIS IS MY TAKE AND NOTHING OFFICIAL), that in spring of 2020 fans can say goodbye to DC Multiverse and other DC action figure lines from Mattel. Imaginext looks to stay safely at Fisher-Price for now.
In spring 2020, we can probably expect a a rollout of new DC action figures and product lines from Spin Master. Hopefully Toy Fair in February will reveal more information.
This certainly isn’t the news that I wanted to wake up to this morning, but Spin Master might offer something that Mattel never could (like keeping the latest offerings in stock on store shelves, and actually shipping product on time and in enough quantity).
As always, leave your thoughts below…
UPDATED: According to this article from Licensing.org, Mattel has lost rights for action figures to Spin Master. The license is for three years. Still waiting for official word from Mattel or Warner Bros. Consumers division… This doesn’t look good for the future of the DC Multiverse.
Mattel, the largest toy company in the world, was founded in 1945. It produces a huge range of dolls, toys, games, and video games for boys and girls of all ages. In addition to the company’s very-well-known lines like Barbie and Hot Wheels, Mattel also provides merchandise under license to some of the world’s most famous properties. Many of the firm’s products have become a part of our culture and one would be hard pressed to find any adult in this country who has not owned, played with, or at least touched one of Mattel’s myriad of toys.