Elsa’s back in her castle… but not in Arendelle. Six years ago, Mattel lost the rights to make and sell Disney princess dolls to rival Hasbro (aka: America’s #1 toymaker). Yesterday, Mattel finally got the lucrative princesses back — and Mattel shares spiked as much as 11% on the announcement. But winning back Jasmine, Ariel, and Moana was no royal carriage ride:
- A whole new world: Mattel’s princess partnership started in 1996 and quickly became a profit puppy, especially after the addition of Frozen’s Elsa in 2013.
- Frozen out: Mattel sold $440M worth of Disney princesses in 2015. Then, a year later, it lost them (#LetItGo). Since then, Mattel has changed CEOs four times.
Barbie’s dream makeover… After losing its profit princesses, Mattel doubled down on its Barbie biz, which was struggling from a sales slump. With the revamp came new, more diverse dolls (think: different skin tones, hair styles, and body types). It worked: Last year, Barbie sales jumped 87% in the first quarter, and it was named “Doll of the Year.” After witnessing Barbie’s comeback, Disney is putting Mattel in charge of its princesses once again.
Intellectual > property... Intellectual property can be worth more than the property itself, which is why Disney enjoys having others turn its characters into toys — for a big licensing fee. Disney loves being courted for its IP: The mouse controls which toys get bought through its movies, so the characters matter more than the plastic. That’s why Hasbro’s slice of the Disney pie also includes rights to “Star Wars” (see: Baby Yoda toy) and soon “Indiana Jones.” Meanwhile, Mattel has Disney’s “Toy Story” and “Pixar Cars.”