Mega Brands Inc MBLKF

RE: MEGA BRANDS ENTERS INTO GLOBAL LICENSING PARTN

[savinfamily]

The Globe and Mail:
That makes the partnership with gaming companies a winning strategy, says Neil Linsdell of Versant Partners.
“I think the target here is to replicate the kind of success that they’ve had with Halo and then you’ve got a real gangbuster toy,” he said in an interview.
Mr. Linsdell said Blizzard and Halo allow the Mega Bloks maker to have the best of both worlds by diversifying its product offering while also solidifying its core market.
“It does move you up to a new demographic which is obviously not as price sensitive.”
The company declined to disclose sales for Halo or its estimates for theBlizzard toys.
Since last year’s recapitalization, Mega Brands has announced a series of licensing agreements for construction toys including Hello Kitty, Thomas the Tank Engine and Need for Speed.
The addition of the Blizzard deal shows that the company is “on the fast track to get back to the growth that they had before,” Mr. Linsdell added.
Mega Brands, which was hammered from the fallout of several recalls of its magnetic toys, hopes to be back to $500-million of annual revenues within four years.