Just Play Reportedly in Talks to Acquire JAKKS PacificJust Play Reportedly in Talks to Acquire JAKKS Pacific
According to Bloomberg, Just Play has placed a bid on JAKKS backed by private equity firm Centerbridge Partners.
October 10, 2019
Just Play is in negotiations to buy rival toymaker JAKKS Pacific, according to a new report from Bloomberg.
The company is reportedly considering purchasing JAKKS Pacific as part of a bid backed by private equity firm Centerbridge Partners. Bloomberg’s sources say the deal could be completed as early as the end of this month.
According to the report, JAKKS licenses for Disney brands such as “Frozen” and Marvel have proven to be a sticking point in early negotiations. Bloomberg states that the agreements between the toy company and Disney includes an option for the House of Mouse to extract a fee when a license is transferred to a new company as part of an acquisition.
The clause could give Disney veto power over the deal because its licenses are such a large part of the JAKKS portfolio. However, Bloomberg’s sources believe that Just Play’s previous relationship with Disney could make the transition more seamless.
Just Play’s potential acquisition of JAKKS comes as consolidation of the toy industry continues. Earlier this month, Jazawares acquired Wicked Cool Toys for an undisclosed amount. The deal followed reports (LA Times) that Jazwares initially reached out to JAKKS about a potential merger last September.
License Global reached out to both JAKKS and Just Play for a comment regarding the Bloomberg report. JAKKS declined to comment; Just Play did not respond to requests as of publication time.
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