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Toy Wars: Mattel Snags 'Jurassic World' License Out From Under Rival Hasbro

Toy Wars: Mattel Snags 'Jurassic World' License Out From Under Rival Hasbro

Mattel, Inc. (NASDAQ: MAT) announced it has won the toy license for "Jurassic World" beginning in the summer of 2017.

The California-based toy company will be taking over a business that was previously owned by rival Hasbro, Inc. (NYSE: HAS). The shakeup in the "Jurassic World" franchise is being pushed as a major victory by Mattel's management, while Hasbro is downplaying its loss of the franchise.

Hasbro CEO Brian Goldner cited financial terms for the company's breakup with "Jurassic World." According to Fortune, Hasbro said the license generated revenue of roughly $100 million during the years in which a new "Jurassic" feature film was released and $50 million in non-movie years. Goldner commented, "We'll no longer handle 'Jurassic Park' because we were unable to arrive at a mutually beneficial financial arrangement on that brand," during a conference call.

Related Link: BMO Plays Nice With Mattel, Puts Hasbro On The Shelf

While the "Jurassic World" franchise may be a coup for Mattel, the shoe was on the other foot earlier in the year when Hasbro won the Walt Disney Co (NYSE: DIS)'s Disney Princess license, which was previously controlled by its rival Mattel. That business generated around $440 million in sales for Mattel.

Both Mattel and Hasbro shares have outperformed thus far in 2016. Mattel, which is slightly larger than its rival with a market capitalization of just under $11 billion, has seen its stock rise 33 percent over the last 52 weeks and 19 percent on a year-to-date basis. Hasbro shares have climbed just under 4 percent over the last 52-weeks, but the stock has jumped better than 20 percent year-to-date. At current levels, Hasbro has a market capitalization of roughly $9.5 billion.

Together, Mattel and Hasbro dominate the toy market, and both are high quality mid-cap companies. Not only do these names offer investors the possibility of significant price appreciation, but they both also pay out healthy dividends. Hasbro is currently yielding around 2.39 percent, while Mattel's yield at current levels is a very attractive 4.61 percent.

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