Subject:
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LEGO Mentioned in Business Week
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Newsgroups:
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lugnet.general
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Date:
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Wed, 10 Feb 1999 15:31:42 GMT
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Viewed:
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956 times
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I am doing this from memory, I don't have the article handy ... forgive me
if I don't get the details exactly correct!
On page 60 of the current issue of Business Week (2/15/99) there is an
article on the the expected impact on several toy manufacturers and
retailers
from the pending flood of Star Wars related toys. The article mentioned
that
Hasbro (I think) paid a $750M licensing fee to LucasFilms for their rights
to make action figures. The article then mentioned that Hasbro needs to
sell
$3B worth of action figures to make a profit.
Towards the end of the article there is a quote from Peter Eio (sp?) of LEGO
Systems, Inc. stating that he expects Star Wars to have a significant impact
on their business.
I am not an accountant nor do I pretend to be but if LEGO had to pay a fee
anywhere in the neighborhood of Hasbro's and they have that on their books
it might explain why they lost money last year. I don't know if a company
can
ammoratize a licensing fee over a product lifetime or if they account for it
all
in one shot. If 1998 was going to be a tough year for LEGO anyway, they may
have elected to swallow the whole thing in one shot. I have seen other
companies
do similar things.
Mike - mike_walsh@mentorg.com
http://members.tripod.com/mike_walsh
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