Mattel shares rose Thursday, as the toy brand announced the launch of a new film division, to create shows and movies related to its own popular branded goods. The US business has appointed well-known and Oscar nominated producer, Robbie Brenner, to lead the new team.
Mattel shares ended the US Thursday session 0.20% higher at $15.33. The stock is also in the green in out-of-hours activity.
Mattel’s new film division
Mattel’s new film division will allow the US firm to create further value from its popular branded toys that are known throughout the world. By securing an experienced and respected film maker to lead the new venture, Mattel has shown they are set on making this a successful addition to their brand.
“Mattel is home to one of the world's greatest portfolios of beloved franchises, and the creation of Mattel Films will allow us to unlock significant value across our IP,” said Mattel’s chairman and CEO, Ynon Kreiz.
“Robbie is a gifted storyteller and a highly respected filmmaker with deep relationships in entertainment. She is the perfect leader to bring our celebrated brands to life,” Kreiz added.
Brenner, meanwhile, is also upbeat at her new appointment.
“Generations of children around the world have grown up with deep emotional connections to Mattel's brands and characters,” Brenner said. “There are so many stories to be told and so many imaginations to be captured by these iconic brands, and I look forward to working with Ynon and his team to do so.”
New income stream
The addition of a new and potentially lucrative income stream, likely proved a popular decision for the toy maker. The maker of Hot Wheels, Barbie, Thomas and Friends and many other popular toy brands, is following a path into films already travelled by others, including Hasbro.
And, with the company still feeling the effects of the Toys ‘R’ Us closure, this new direction for the business should help generate much needed profits.
Mattel has struggled to grow its sales and announced plans during the summer, to cut around 20% of its global, non-manufacturing work force.