Hasbro Wins Right to Sesame Street Characters in Deal (Update1)
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By Inyoung Hwang
Dec. 7 (Bloomberg) -- Hasbro Inc., the world’s second- largest toymaker, won a 10-year contract to manufacture and market toys based on characters from Sesame Workshop, the nonprofit educational organization behind “Sesame Street.”
The new products from Hasbro’s Playskool division will be based on Elmo, Big Bird, Cookie Monster and other mainstays of the television program, according to a statement today. The line of toys and games by Pawtucket, Rhode Island-based Hasbro will be available in stores starting 2011.
Fisher Price, a subsidiary of Mattel Inc., the world’s biggest toymaker, owned the rights for the last 10 years, said Sherrie Westin, chief marketing officer of Sesame Workshop. The switch was made because Hasbro has the right strategy to develop a year-round business, Westin said. More Sesame Street toys will be sold throughout the year going forward, she said.
“Our approach to the consumer is to deliver products throughout the year, not just in the fourth quarter,” John Frascotti, chief marketing officer of Hasbro, said.
He declined to predict how much in sales the Sesame Street toys would generate for Hasbro. The terms of the deal won’t be disclosed, Westin said.
Spokesmen for Mattel didn’t immediately return calls for comment before regular business hours.
Hasbro added 65 cents, or 2.2 percent, to $30.83 at 4 p.m. in New York Stock Exchange composite trading. The shares have gained 5.7 percent this year. Mattel climbed 14 cents to $20.03. The shares have gained 25 percent this year.
To contact the reporter on this story: Inyoung Hwang in New York at ihwang7@bloomberg.net
Last Updated: December 7, 2009 16:21 EST
