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Mattel wins licensing rights to Warner Bros. characters

3 min read

LOS ANGELES (AP) – Warner Bros. has awarded Mattel Inc. the right to produce toys and games based on its Batman, Superman and Looney Tunes characters, including Bugs Bunny, for the next five years. The deal gives Mattel the right to produce plush dolls, vehicles, games, action figures and other toys for upcoming movies and television shows featuring the Warner Bros. characters.

The deal is estimated to be worth between $200 million and $500 million over the life of the agreement according to people familiar with the matter.

Mattel, based in El Segundo, Calif., will have worldwide rights, except in Asia.

The agreement gives Mattel the lucrative Batman rights now held by rival Hasbro Inc.

Those rights will go to Mattel when Warner’s current deal with Hasbro runs out at the end of this year.

Mattel won the comprehensive licensing rights in part because Warner Bros. was pleased with the toys and games Mattel produced for last year’s hit “Harry Potter and the Sorcerer’s Stone.”

Mattel was awarded the licensing rights for the Harry Potter films in 2000.

“They creatively came in with a compelling presentation,” said Dan Romanelli, president of Warner Bros. Worldwide Consumer Products.

“It was important for them and strategic for them.”

Hasbro holds the licensing rights for Warner Bros.’ Scooby-Doo and Powerpuff Girls movies.

Warner Bros. is producing a combination live-action-animated film featuring the Looney Tunes characters.

It also plans to launch a television show featuring younger versions of Bugs, Daffy Duck and other Looney Tunes characters.

The studio also produces an animated television show featuring Justice League characters, including Superman, Wonder Woman and The Flash.

The studio is also discussing new live-action installments in its Batman and Superman franchises, including a film featuring both characters, tentatively scheduled for release in 2004.

Mattel said its focus on building long-term franchises coincides with the studio’s desire to do the same.

“We’re focusing on generating creative ideas and products out of the essence of the property versus souvenirs of what you might see on the screen or the TV show,” said Matt Bousquette, president of Mattel’s entertainment division.

Shares of Mattel were down 15 cents to close at $20.60 in trading on the New York Stock Exchange Monday, but gained 5 cents in extended trading.

Shares of Hasbro were down 23 cents to close at $13.51 on the NYSE, while shares of AOL Time Warner were down 61 cents to close at $14, but gained 19 cents in extended trading.

On the Net:

http://www.aoltimewarner.com

http://www.hasbro.com

http://www.mattel.com

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