Hasbro Acquire Power Rangers – What Next In Turbulent 2018?!

HASBRO ACQUIRE POWER RANGERS – WHAT NEXT IN TURBULENT 2018?!

The big news just keeps on coming in 2018!

So far we’ve had the Toys R Us situation, Mattel’s change of CEO so soon after appointment and now it has been announced that Hasbro has acquired Power Rangers the evergreen kids entertainment and action figures brand!

Power Rangers has been one of the top action figure brands for more than 2 decades now, with new storylines and plot twists as well as accessories, outfits and monsters keeping the franchise refreshed year on year!

Hasbro has potentially scooped up a bargain (despite the hefty c. $522m price tag reported!). This brand further enhances Hasbro’s near dominance of the action figure aisle…looking forward they will have Power Rangers figures alongside Star Wars & Marvel, the mightiest collection of brands in that aisle by far. And with Marvel bouncing back from a disappointing 2017 to smash the start of 2018 with the Black Panther – now the 9th biggest grossing movie of all time – and with Avengers: Infinity War having the biggest opening weekend of all time, Hasbro seem to be back on a roll, despite the blip of Toys R Us implosion.

With Power Rangers though, perhaps more importantly Hasbro gain another movie franchise of their own. Since the massive success of the Transformers movie series, Hasbro have struggled somewhat to bring the rest of their vast portfolio so successfully to the big screen. Power Rangers offers them another chance to do that, as well as the ongoing reach of the TV/digital content.

What makes these current times in the toy indutry so interesting though is that Hasbro & Mattel have grown significantly via acquisitionss, but they have both now reached such a size that the $50m or $100m deals of ten years ago are no longer relevant for them. They need this Power Rangers sized deal to make it worth the effort. As per Mattel’s acquisition of Bob The Builder/Hit Entertainment and Mega Blocks, we’re now looking at $300m-500m min. deals for acquisitions to make sense for these two mighty toy behemoths. Hasbro are realistically most likely to be in acquisition mode right now as they have stability which Mattel appear to lack currently. So I would not be surprised if this is the last acqusition we see from Hasbro, but there are only so many brands/companies big enough for them to purchase.

We can expect the next size down of Global toy companies to continue to reap the rewards of the $20m-$100m acquisitions which no longer make sense for Hasbro & Mattel.

We can also expect a raft of new product and entertainment initiatives to come forth from Hasbro as this acqusition matures.

WOW – interesting times in the toy business!

 

by Steve Reece, CEO of Kids Brand Insight www.KidsBrandInsight.com,  a leading toy expert consultancy to toy companies around the world. Services include Sourcing/factory finding especially in India & other ‘new’ manufacturing economies, toy business consultancy and product representation.