Toy giant Hasbro Inc. announced that its license with Lucas Licensing Ltd., for the manufacture and distribution of Star Wars merchandise has been extended through 2018. The minimum guarantee payable to Lucas has also been reduced by $85 million.
The agreement with Lucas Licensing Ltd. continues to give Hasbro exclusive worldwide rights to core action figures, electronic hand-held games, die cast vehicles and creative play products.
In a separate agreement, Hasbro extended by ten years the terms of the warrants it previously granted to Lucas Licensing Ltd. and Lucasfilm Ltd. The warrants provide for the purchase of an aggregate of 15,750,000 shares of Hasbro common stock. In addition, the agreement provides Lucas with an option during the next five years to sell all of these warrants to Hasbro for a price to be paid at Hasbro’s election of either $100 million in cash or $110 million in Hasbro common stock.