It’s a rough end of the year for Mattel as their stock took a slide Monday after news broke they’d be losing some of the licensing rights to DC Comics toys including boys’ action toys.

Spin Master Corp. will be the new licensee for DC in the “boys’ action category, remote control and robotic vehicles, water toys, and games and puzzles.” The three year deal begins in spring 2020.

Mattel will be the licensing rifhts for preschool and girls’ toys.

Mattel had a rough year reporting gross sales of $303.9 million of its partner brans as of September 30. That was down 15% compared to the same time last year. They attributed that to lower sales of DC Comics girls and boys product. The stock has dropped nearly 40% this year. Earlier this year they said they were cutting over 2,200 jobs as part of a cost-cutting plan needed after the end of Toys R Us which has negatively impacted the toy industry this year.

A Goldman analyst said that Mattel would attempt to get new licensees and they noted that Hasbro’s deal with Marvel and Star Wars expires in 2020.

There has been persistent rumors that rival Hasbro would attempt to purchase Mattel, that included a “takeover offer” in 2017.

San Diego Comic-Con 2019 and Toy Fair, where many of the next year’s toys debut, will be interesting. The latter is a bit soon for Mattel to unveil a lot, especially new licenses, but the former will be a key time for them to make a splash.

(via Los Angeles Times)