Disney, Lego ink multi-year licensing deal

NEW YORK (MarketWatch) -- Walt Disney Co. (DIS:Walt Disney Company

said Sunday it has signed a multi-year licensing agreement with Denmark's privately held Lego Group, giving the toy maker access to Disney and Disney Pixar properties. Disney didn't disclose how much the deal was worth but said Lego products are currently in development for three franchises -- Disney Pixar's "Toy Story" and "Cars," and "Prince of Persia" -- all scheduled to launch ; in 2010

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Mega Brands loses Disney licensing to Lego, picks up Nickelodeon

MONTREAL — Mega Brands (TSX:MB) hopes a global licensing deal with the Nickelodeon kid-oriented cable TV channel in the United States will cushion the blow of losing its Disney agreement to rival Lego.

The Montreal-based toy company's run manufacturing products tied to the hit Disney animated movie Cars, Cinderella and Winnie the Pooh ends this year.

"It doesn't mean we are never going to work with Disney again or anything like that," Mega Brands spokesman Harold Chizick said from the New York Toy Fair.

"For now, we're going to focus on other places."

The partnership with Nickelodeon & Viacom Consumer Products (NYSE:VIA.B) will develop construction toys based on Nick Jr.'s hit preschool television series The Wonder Pets, and Ni Hao, Kai Lan.

Mega Brands also recently won licensing deals for Wildbrain and Yo Gabba Gabba, and said it will soon announce a large licensing agreement with a well-known TV series.

Chizick declined to say how much money is generated from its Disney products (NYSEIS) or whether the new contracts would replace revenues lost from its association with the iconic American entertainment conglomerate.

"We have strategically made sure that our business will continue to have the top preschool licences," Chizick said.

New York-based toy analyst Chris Byrne, who is known as The Toy Guy, said losing the Disney franchise is significant but that it's normal for licences to move around manufacturers.

"Nickelodeon is a very strong brand and it may balance it out ultimately," said Byrne, who is content director of TimetoPlaymag.com.

Licences often migrate because of manufacturer guarantees, product mix and promotional spend, he said.

"Disney is definitely looking for people to spend," Byrne said, noting Lego may have the financial resources after coming off a banner year in 2008.

"They may be in a better position to spend or what Lego says they're going to spend may be more than what Mega wants to spend."

Disney, which recently changed management at its consumer toy division, couldn't be reached for comment.

Lego spokesman Michael McNally said the Danish-based toy giant will begin its partnership in 2010 with Toy Story, Cars and Prince of Persia.

Toy Story 3 is scheduled to be released next year and Lego plans to launch products for children aged two plus and those five and over.

"We don't typically offer the same property on both platforms, but we recognize the dual appeal the Toy Story franchise holds and are excited about this broader development of a property in Lego form," he said in an e-mail.

McNally wouldn't disclose financial terms of the deal with Disney but said it represents "an incredible opportunity for us to drive sustained volume and recruitment to the Lego brand."

The New York Toy Fair is the world's pre-eminent toy show. It's an opportunity to manufacturers to present their new product lines.

Mega Brands hopes to endure the global economic slump by offering cheaper toys and value to customers, said Chizick, who noted the buzz at this year's show is on price.

The struggling toy maker's shares got a jolt earlier this month when it announced an agreement to build construction toys linked to the new Halo War video game.

Byrne called the Halo association "brilliant" for Mega Brands because it ties in with a stable, popular game that is a lifestyle for many players.

"Every guy out there who's totally into this is going to buy every product they put out on the market," he added.

The shares closed last week at 81 cents, up 36 cents this year, but down from a peak of $29 in 2006. North American stock markets were closed Monday for holidays.
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Wouldn't it be nice to have a girl line of lego?! ;

When I was a kid, I had a Lego hairdresser studio, kitchen, and kids playroom ... the only set I could find for my DDs was in CA Legoland. It was a set to make a house ... no indoor play scenes.

Yah think Disney could do princess castles or something.