Santa Monica toy company Jakks Pacific Inc. announced Monday it had renewed a multi-year licensing agreement for more than 50 Walt Disney Co. entertainment properties for distribution in China.
“We don’t disclose dollar amounts for these deals and don’t specify the number of years we’ve signed, but I can tell you that it’s more than two years,” said Sara Montalvo, a spokeswoman for Jakks.
She added that Jakks has had a partnership with Disney in different markets for the past 12 years.
Despite the deal, Jakks stock took a dip on Monday, falling 2.8 percent to $5.20 a share.
The company has struggled over the years but got a steady footing when it nabbed a product deal for Disney’s “Frozen” in 2014 and diversified its products two years ago when it started investing in new licenses to make action figures and costumes based on video and computer games including “Halo” and “World of Warcraft.”
Under the Chinese market deal renewal, Jakks expects to roll out new products this year, Montalvo said. She said that Jakks will use manufacturing facilities in Asia for production.
The agreement includes properties Disney Princess and Disney Frozen, and new entertainment properties from Disney movies “Tangled,” “Moana,” and “Beauty and the Beast.”
“We are delighted to renew and expand our relationship with Disney China. JAKKS has strategically opened offices in Shanghai as well as in other areas of China, and over the years has grown to better support key licensing opportunities such as this agreement with Disney Consumer Products and Interactive Media,” said Stephen Berman, chairman and chief executive of Jakks.
Manufacturing and trade reporter Shwanika Narayan can be reached on firstname.lastname@example.org. Follow her on Twitter @shwanika.