Mattel has lost many of its licenses to produce toys based on characters from DC Comics.
Bloomberg reports that the company has lost the licenses to boy’s action figures, remote control and robotic vehicles, water toys and assorted games and puzzles based on DC characters and concepts. The company still retains the rights to certain kinds of toys, however, including preschool and girls’ toys. The licenses are set to expire in 2020 and will be transferred over to rival toy company Spin Master Corp.
For the third year in a row, Mattel has posted declining sales. The newest losses are being pinned on the company's loss of many DC toy licenses, despite retaining some of its prior deal with DC.
2020 will be a crucial year for Mattel, as Hasbro's licenses with major franchises like Marvel Comics and Star Wars are set to expire. It's expected that the company will aggressively pursue other franchises to replace the departing ones, and will try to maintain its relationship with Disney (which owns both Marvel and Star Wars). The announcement has already caused shares in Mattel (which are already at their lowest in 18 years) to drop an additional 4.5 points in the stock market.