signed an agreement that will give
the right to make toys and games based on characters like Spider-Man, the Fantastic Four, the X-Men and Captain America.
Hasbro can start selling products in retail outlets beginning Jan. 1, 2007. Hasbro's first full line of products will likely revolve around
is scheduled for release in May 2007.
New York-based Marvel said Monday that the five-year license guarantees it $205 million in royalty and service-fee payments, of which $70 million would be payable on the theatrical release of
and $35 million when
comes out. The license can be extended past the five-year term.
Separately, Marvel said that as a result of the pact with Hasbro, it ended its licensing agreement with Toy Biz Worldwide, a move that's effective as of this past Dec. 31. The Toy Biz deal is being ended a year earlier than the scheduled termination date, and Marvel will have to take a fourth-quarter charge of $13 million to $16 million.
In connection with the signing of the Hasbro license agreement, Marvel will receive a nonrefundable advance of $100 million, but the payment won't be immediately recognized as revenue.
Shares of Marvel were gaining 34 cents, or 2%, to $17.03. Hasbro, Pawtucket, R.I., was up 80 cents, or 4%, at $20.79.