Hasbro will guarantee an additional $80 million in royalty payments to Walt Disney Co. to extend Marvel licensing pact for two years, to 2020, and also will pay Mouse House up to $225 million extra for Star Wars merch rights.
Companies said contract extension aligns terms for Marvel and Lucasfilm agreements, following Disney’s acquisition of Lucasfilm last year. Hasbro’s rights to Star Wars franchise also extend to 2020.
Separately, Hasbro on Monday posted a 16% decline in second-quarter 2013 net profit on weaker sales of boy-targeted toys — a category in which the Disney properties have been key. Net revenue declined 5.9% for the period, to $766 million.
Hasbro’s additional Marvel payments are contingent on additional Marvel theatrical releases. The $225 million extra for Star Wars takes into consideration Disney’s next three installments planned for the space-opera powerhouse, with $75 million payable on signing. “Star Wars: Episode VII,” helmed by J.J. Abrams, currently skedded for summer 2015 release.
“Disney’s entertainment slate provides extensive content for both companies to build upon for years to come,” Hasbro prexy and CEO Brian Goldner said in announcing the deal extension.
Hasbro said it will continue to develop wide range of toys and games based on some of Marvel’s 8,000 characters, including Spider-Man, The Avengers and Iron Man.