Activision Publishing Inc. on Wednesday said that it entered into a multi-year global licensing partnership with Mega Brands Inc. to develop toys and puzzles inspired by Activision’s Skylanders Spyro's Adventure video game franchise.

The subsidiary of Santa Monica’s Activision Blizzard Inc. said toys based on its upcoming “Skylanders Giants” game would come out under Montreal, Quebec-based Mega Brand’s Mega Blocks and Mega Puzzles lines.

"One of the magical things about Skylanders Spyro's Adventure and Skylanders Giants is how they inspire kid's imaginations, and we look forward to giving them new ways to create exciting adventures and unique play experiences," said Ashley Maidy, head of global licensing and partnerships at Activision Publishing.

Skylanders Spyro's Adventure video game franchise already offers physical toys and a virtual game world available across several video game consoles. The new deal will create physical products that are more interactive.

Activision shares were down 12 cents, or 1 percent, to $11.84 in midday trading on the Nasdaq.