Hasbro Inc. 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.
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.
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“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,” said Alan G. Hassenfeld, Hasbro’s chairman and chief Executive officer.
The agreement with Lucas Licensing 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, the company said in a press release.
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.
