Hasbro And Lucas Extend Star Wars License Through 2018
Toy manufacturer Hasbro, Inc. has scored a major coup in the licensing biz by extending its license with Lucas Licensing, Ltd., for the manufacture and distribution of STAR WARS toys and games 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 to $505 million. Under its original 10-year deal, the minimum payment to Lucas was $590 million of which Hasbro has already paid $470 million. The agreement with Lucas Licensing continues to give Hasbro exclusive worldwide rights to action figures, vehicles and games, including electronic hand-held games. The next installment of STAR WARS is due in theaters in 2005.