The five-year license gives Hasbro the rights to bring Marvel Entertainment-based toy products to retail beginning January 1, 2007. Hasbro's first full line of products based on Marvel properties is expected to center on Ghost Rider and the highly-anticipated movie event, Spider-Man 3, scheduled for release on May 4, 2007. Marvel has also agreed to provide services to Hasbro in connection with the licensed toys. The license guarantees Marvel $205 million in royalty and service fee payments, of which $70 million would be payable on the theatrical release of Spider-Man 3 and $35 million upon the theatrical release of Spider-Man 4. In addition, the license can be extended past the five year term, dependent on the number of other entertainment properties released during that timeframe.
"We are particularly pleased with this arrangement as it fits strategically into our plan to continually develop our home-grown core brands while aligning ourselves selectively with the best licenses in the business," Alfred J. Verrecchia, President and Chief Executive Officer of Hasbro, Inc. said.
"Hasbro's multi-year agreement with Marvel provides Hasbro with proven properties in categories where we have been long-time industry leaders," said Brian Goldner, Hasbro's President, U.S. Toy Segment. "Marvel's properties are a 'who's-who' in children's and family entertainment and provide Hasbro with many exciting opportunities in the years ahead."
Tim Rothwell, Worldwide President, Consumer Media Group, Marvel Entertainment, added, "Hasbro is renowned in the toy arena. It supports its key brands with heavy promotional and advertising campaigns and their innovation provides consumers with an unmatched retail experience. We believe aligning with Hasbro as our master toy and game partner sets the stage for us to further extend the global and domestic reach and image of the overall Marvel brand."
Bruno Maglione, President, Marvel International, commented, "As we continue the process of developing our brands through a heightened mix of coordinated multi-media and product activity it was important to engage with a partner who understands how to leverage and optimize that sort of evergreen franchise approach. Hasbro brings that experience to the table, and with it, the ability and reach to execute globally. It's a perfect match."
David Hargreaves, Chief Financial Officer of Hasbro, Inc, said, "We are very pleased with this deal as it provides Hasbro with incremental revenues in high margin categories and allows us to maintain an appropriate balance in our portfolio of core brands and strategic licenses."
Juli Boylan, Sr Vice President, Sony Pictures Consumer Products, the limited partner in Spider-Man Merchandising LP, stated, "We are thrilled to have Hasbro develop toys and games for Spider-Man 3. We are very proud of the Spider-Man film franchise and feel Hasbro will play a pivotal role in its continued success."
The license is conditioned on its clearance under the Hart-Scott-Rodino Antitrust Improvements Act of 1976.
About Hasbro, Inc.
Hasbro (NYSE:HAS) is a worldwide leader in children's and family leisure time entertainment products and services, including the design, manufacture and marketing of games and toys ranging from traditional to high-tech. Both internationally and in the U.S., its PLAYSKOOL, TONKA, MILTON BRADLEY, PARKER BROTHERS, TIGER, and WIZARDS OF THE COAST brands and products provide the highest quality and most recognizable play experiences in the world. ©2006 Hasbro, Inc. All Rights Reserved.
About Spider-Man Merchandising, LP
Spider-Man Merchandising, LP is the limited partnership comprised of Marvel Entertainment, Inc. and Sony Pictures Consumer Products Inc., which oversees the licensing and merchandising for the Columbia Pictures Spider-Man feature films, and is overseeing the licensing and merchandising for Columbia Pictures Spider-Man™ 3 feature film.
About Sony Pictures Consumer Products
Sony Pictures Consumer Products (SPCP), a Division of Columbia Tristar Consumer Marketing (CTCM), is based in Los Angeles and handles the merchandising and branding efforts for some of the most recognized properties in film and television. Columbia Tristar Consumer Marketing is a division of Sony Pictures Entertainment (SPE). SPE is a subsidiary of Sony Corporation of America (SCA), a subsidiary of Tokyo-based Sony Corporation. SPE's global operations encompass motion picture production and distribution; television production and distribution; digital content creation and distribution; worldwide channel investments; home entertainment acquisition and distribution; operation of studio facilities; development of new entertainment products, services and technologies; and distribution of filmed entertainment in 67 countries.