RUMOR: Disney Buying Hasbro?

[GLaDOS]

I find it interesting that there are still no stories or sources about this from any major financial paper.. and the only source anywhere is a nameless MTV reporter.. Sounds blown out of proportion to me.

From what I've read elsewhere, one of the guys from CNBC said the rumor was much ado about nothing.

 

[Viget]

So if they buy Hasbro can we then expect a GI Joe land? I hope this is just a rumor, after gobbling Marvel the last thing they need is Cobra Command.

I mean, who wouldn't want to visit Cobra-La? Especially those mutating spores....

In all seriousness, I remember loving the GI Joe Cobra-La miniseries when I was a kid. That was awesome storytelling.

 

[Viget]

That's true. I was only remarking on how unhappy the Board should be that the guy they appointed to run the company is choosing this as the way to spend his time. If I was on the Board, I would consistently be annoyed that the CEO is constantly coming up to me, palms up and arms outstretched, asking again for more money to make yet another acquisition. Doesn't he have anything else to do, like actually contribute ideas that improve our current product?

That's because up until recently, Iger was like an Eisner clone. Now he has an exit plan from Disney and wants to leave his legacy. So what does he do? He becomes the anti-Eisner and starts gobbling up big media properties left and right. If you read DisneyWar it certainly paints Eisner as being very anti-acquisition, I think he only begrudgingly did the CapCities/ABC deal and that was because all the other big content providers were acquiring networks too, thanks to the deregulation of the late 90s/early 2000s. I think Eisner knew Disney was toast unless he acquired a network, so his hands were kind of tied.

But that book also details numerous deals that Ovitz or others tried to make that probably would have been very good for Disney, that Eisner would scuttle behind their backs. Toward the end it seemed like Eisner was totally paralyzed by indecision, he didn't want to spend ANY money to buy new stuff, and his own internal creatives were failing him as well, and he didn't want to spend money to help develop things internally either. To be fair, part of it was the great tech bubble burst followed by 9/11, but other companies seemed to navigate that alright. No wonder why Comcast almost took over Disney.

Honestly, I think most of these deals make sense stategically for Disney and will help strengthen the company in the long run. What I hope doesn't happen, is that in the process of doing so, Disney becomes just another media company and loses the foresight, creativity and innovation of its namesake. To me, what always set this company apart from the others was the willingness to dream big and acheive big. That DNA is still there, but it should be promoted more. People like John Lasseter I think are the next guardians of the flame, I hope he and others are training a new generation to continue that mindset.

Wish some of them could be in the boardroom though.

 

[thomas998]

That's because up until recently, Iger was like an Eisner clone. Now he has an exit plan from Disney and wants to leave his legacy. So what does he do? He becomes the anti-Eisner and starts gobbling up big media properties left and right. If you read DisneyWar it certainly paints Eisner as being very anti-acquisition, I think he only begrudgingly did the CapCities/ABC deal and that was because all the other big content providers were acquiring networks too, thanks to the deregulation of the late 90s/early 2000s. I think Eisner knew Disney was toast unless he acquired a network, so his hands were kind of tied.

But that book also details numerous deals that Ovitz or others tried to make that probably would have been very good for Disney, that Eisner would scuttle behind their backs. Toward the end it seemed like Eisner was totally paralyzed by indecision, he didn't want to spend ANY money to buy new stuff, and his own internal creatives were failing him as well, and he didn't want to spend money to help develop things internally either. To be fair, part of it was the great tech bubble burst followed by 9/11, but other companies seemed to navigate that alright. No wonder why Comcast almost took over Disney.

Honestly, I think most of these deals make sense stategically for Disney and will help strengthen the company in the long run. What I hope doesn't happen, is that in the process of doing so, Disney becomes just another media company and loses the foresight, creativity and innovation of its namesake. To me, what always set this company apart from the others was the willingness to dream big and acheive big. That DNA is still there, but it should be promoted more. People like John Lasseter I think are the next guardians of the flame, I hope he and others are training a new generation to continue that mindset.

Wish some of them could be in the boardroom though.

Nothing is more dangerous than a CEO with an exit plan... the real question is what type of exit plan is he planning... I've see my share of big dogs do very stupid things simply because it pushed one of the criteria in their bonus plan past a certain point.

 

[jdmdisney99]

If this happened, what if Disney waited right until UNI opened Transformers and bought out the Transformers theme park rights?

 

[flynnibus]

If this happened, what if Disney waited right until UNI opened Transformers and bought out the Transformers theme park rights?

UNI would never have bought into a licensing deal where they didn't have at least some say in keeping the license safe for their use. Much like the existing Marvel license.. even if Disney wanted to kick UNI out, they can't just do it without UNI's approval. I doubt the transformers licensing is as strong as the original IOA licensing was (perpetual, etc) but even if Disney did own Hasbro... cutting UNI off would likely be a complicated issue.

But all of this is theoretical - there is no real meat to think any of this is actually happening.

 

[jdmdisney99]

But all of this is theoretical - there is no real meat to think any of this is actually happening.

Exactly. Theoretical. Your whole post makes sense to me. Just thought that would be pretty interesting.

 

[unkadug]

they should at the least buy GE, then they could replace all the burnt out light bulbs everywhere

Well Siemens is a major sponsor and they own Osram/Sylvania...but that didn't help matters at all either.

 

[SirLink]

But disney started the dwarves who have names and different primary emotions. Similar to the smurfs.

Nope that would be 1912 Broadway play version of Snow White.

The dwarves were called: Blick, Flick, Glick, Snick, Plick, Whick and Quee.

 

[WED99]

Nope that would be 1912 Broadway play version of Snow White.

The dwarves were called: Blick, Flick, Glick, Snick, Plick, Whick and Quee.

Ok so that's the names, but not at all like smurfs. The smurf like dwarves were Disney. Good facts by the way! I would never know that!

 

[Cmdr_Crimson]

With them buying everything lately I came across this Humorous comic..

 

[Rivers Rowe]

I think people are making too much of this. Hasbro would give disney a established company to make and distribute all those new Star Wars toys I'm sure we will see. On the topic of Universal that keeps popping up, I still doubt Disney sees them as a real competitor.

 

[Cmdr_Crimson]

I think people are making too much of this. Hasbro would give disney a established company to make and distribute all those new Star Wars toys I'm sure we will see. On the topic of Universal that keeps popping up, I still doubt Disney sees them as a real competitor.

You'd think instead of Hasbro they'd go with Mattel..As they have been using Barbie for things with Disney with the Toy Story films and they had that show in Epcot in 1994 The Magical World of Barbie..

 

[Rivers Rowe]

You'd think instead of Hasbro they'd go with Mattel..As they have been using Barbie for things with Disney with the Toy Story films and they had that show in Epcot in 1994 The Magical World of Barbie..

But Hasbro owns the rights to Star Wars and Marvel toys. Anything else Hasbro owns would be gravy.

 

[coolbeans14]

maybe we'd finally get that monopoly movie they have been on about. then the sequel can be the banker going crazy, setting up a dangerous organisation, locking everyone in jail, before destroying all apartments and hotels.
the sequel to that can be a reboot

 

[Cmdr_Crimson]

But Hasbro owns the rights to Star Wars and Marvel toys. Anything else Hasbro owns would be gravy.

True..But it also looks as they also deal with Mattel..http://shop.mattel.com/family/index.jsp?categoryId=3719991

 

[danlb_2000]

But Hasbro owns the rights to Star Wars and Marvel toys. Anything else Hasbro owns would be gravy.

Disney already owns Marvel and will own Star Wars so they will already own the rights to these toys. Hasbro only has an agreement of some sort to manufacture and sell them. If Disney truly is interested in Hasbro I would think it would be for the IP rights to Transformers and GI Joe, everything beyond that would be gravy.

 

[flynnibus]

Disney already owns Marvel and will own Star Wars so they will already own the rights to these toys. Hasbro only has an agreement of some sort to manufacture and sell them

Kenner->Hasbro has the toy rights to the franchise.. meaning while Lucas (aka Disney) certainly has oversight and most likely approval rights... Kenner->Hasbro has the exclusive to this space.

Generally it works like
Creator: 'we have this really cool movie concept.. Star Wars.. we are shopping around and we want people to make merchandise using it!!'
ToyCompany: 'we would like to make star wars toys'
Creator: 'ok, you pay this licensing fee, and royalties, and you can't make anything without our permission'
ToyCompany: 'ok, but if you want us to pay these redonkulus fees up front for a unproven franchise, we demand we are the exclusive licensee for this franchise in this product space'
Creator: ' did you send the check yet?'
..

Not every licensing deal is an exclusive or perpetual.. most aren't if a license is an established brand. But when things are new, or people are small... exclusivity is how people hedge their risk for investing in something unproven.

What I don't know is the terms of scope for this old agreement. Do they only have rights to certain sections of the universe.. or over all.. etc. So for instance, if Disney were to make a new space.. like Clone Wars for instance.. if that's fair game to shop out as a new license. Or if since it's under the Star Wars universe, if Hasbro has dibs. You may even find clauses like right of first refusal on new concepts, etc. Dunno, haven't seen any explanation of Kenner and Hasbro's licensing deals with Lucasfilm.

 

[flynnibus]

Here's at least one historical story on the topic...

http://money.cnn.com/magazines/fortune/fortune_archive/1997/08/18/230223/index.htm

should be able to find something about the license deals struck after this Hasbro screw up

 

[flynnibus]

And here is some PR from when Hasbro extended their SW deal through 2018 back in '03

HASBRO AND LUCAS EXTEND STAR WARS LICENSE THROUGH 2018

Pawtucket, RI (January 30, 2003) - Hasbro, Inc. (NYSE: HAS) announced today that its license with Lucas Licensing Ltd., for the manufacture and distribution of Star Wars toys and games, has been extended for an additional ten years.
"We are delighted to extend our long-term relationship with Lucas," said Alan G. Hassenfeld, Hasbro's Chairman and Chief Executive Officer. "This extension provides us with a real economic benefit by allowing us to continue to build and expand on the success of this franchise property for many years to come."
"Lucas and Hasbro have always viewed Star Wars as a long-term proposition. This extension truly gives us the opportunity to plan far into the future for the benefit of all the fans who have followed the saga for the last 27 years," said Howard Roffman, President of Lucas Licensing. "Hasbro is unmatched in the boys action arena, and we are confident that their future work on Star Wars toys and games will continue the tradition of excellence they have established."
Under the terms of the extension, the agreement is expected to run through 2018. The minimum guarantee payable to Lucas has also been reduced by $85 million.
"Based on the restructuring of these agreements, we do not expect any current or future impairment charge related to Star Wars," said David Hargreaves, Hasbro's Chief Financial Officer. "Lucas has shown they are a true partner of Hasbro."
In a separate agreement, Hasbro extended by ten years the terms of the warrants it previously granted to Lucas Licensing Ltd. and Lucasfilm Ltd. The warrants provide for the purchase of an aggregate of 15,750,000 shares of Hasbro common stock. This agreement further provides Hasbro with an option running through October 13, 2016, to purchase these warrants from Lucas for an aggregate purchase price of either $200 million in cash, or $220 million in Hasbro common stock, such stock being valued at the time of exercise of the option. In addition, the agreement provides Lucas with an option during the next five years to sell all of these warrants to Hasbro for a price to be paid at Hasbro's election of either $100 million in cash or $110 million in Hasbro common stock, such stock being valued at the time of exercise of the option.
The agreement with Lucas Licensing Ltd., continues to give Hasbro exclusive worldwide rights to core action figures, vehicles and games, electronic hand-held games, die cast vehicles and creative play products.
Hasbro will announce its fourth quarter and full year 2002 results on Thursday,
February 13, 2003 and will be hosting a webcast of the conference call at 9:00 a.m. EST.

http://phx.corporate-ir.net/phoenix.zhtml?c=68329&p=irol-newsArticle_pf&ID=376633&highlight=
http://apps.shareholder.com/sec/viewerContent.aspx?companyid=HAS&docid=2132683