Zarkan Posted February 28, 2014 (edited) Matell to buy Mega Brands for 460 Million Edited February 28, 2014 by Zarkan Share this post Link to post Share on other sites
just2good Posted February 28, 2014 This is about Mattel, not Hasbro. So this means nothing for Kreo. Mattel is already a partner of Mega, as they have MegaBloks Barbie. Share this post Link to post Share on other sites
tedbeard Posted February 28, 2014 I think you are confused. The headline is "Mattel to buy Mega Brands to build up against Lego". That means MB will continue to compete with Kreo. Share this post Link to post Share on other sites
B-Lister Posted February 28, 2014 Kreo are very high quality. I have a lot of the Transformer and GI Joe minifigures, and they are very well made. MegaBloks are quite ugly. So glad Lego got the POTC and Marvel licenses from them. Share this post Link to post Share on other sites
WaysofSorting Posted February 28, 2014 Yes - seems like way late in the game for Mattel to be coming into this arena. But this is probably in both companies' interests...Mega would get some marketing and licensing power behind them, while Mattel gets the established team from Mega Brands. Even though I really hate the product Mega puts out, I have been impressed at the speed and flexibility they have shown in obtaining licenses and brands. A few years ago I might have argued that MEGA had a leg up on TLG. Since then, the gap has clearly closed and it seems like MEGA is flailing. The Call of Duty line recently released seemed very "off brand" to me. But it probably works best where MEGA is strongest - value oriented discount box stores like Walmart and BigLots. Share this post Link to post Share on other sites
Zarkan Posted February 28, 2014 (edited) For the love of... how on earth did I mess this up? Dagnabbit, I think this topic requires a title change.... (This is what I get for rushing a topic out a minute before we leave to get breakfast....) Edited February 28, 2014 by Zarkan Share this post Link to post Share on other sites
meyerc13 Posted February 28, 2014 (edited) Mattel is already a partner of Mega, as they have MegaBloks Barbie. And Hot Wheels. This is an interesting development... I've already noticed that Mega Bloks was scooping LEGO on some nice license deals. Imagine if LEGO had gotten John Deere, CAT, and Skylanders? All of those would be huge with the kids if done by LEGO, but I think have faltered under Mega Bloks (judging by the number of sets hitting clearance aisles). With Mattel backing them, I think they have a better chance at major license deals. LEGO is going to need to step up their game and avoid flops like Prince of Persia and The Lone Ranger and get more deals like Skylanders and Minecraft. If LEGO doesn't get them, Mattel will and that will continue to chip away at LEGO's bottom line despite the quality differences. I think the key for LEGO is moving away from their model of licensing sets for PG13 movies and instead target more kid friendly properties like Skylanders. Edited February 28, 2014 by meyerc13 Share this post Link to post Share on other sites
Deathleech Posted February 28, 2014 Does this mean the quality of Mega Bloks might actually improve too? Kre-O seems decent quality where as Mega Bloks seems to be the company every one complains has the distinct lack of. Share this post Link to post Share on other sites
Brandon Miller Posted February 28, 2014 Does this mean the quality of Mega Bloks might actually improve too? No. Have you seen some of the quality Mattel puts out? Share this post Link to post Share on other sites
B-Lister Posted February 28, 2014 LEGO is going to need to step up their game and avoid flops like Prince of Persia and The Lone Ranger and get more deals like Skylanders and Minecraft. Mock Prince of Persia if you must (seriously, it was awful! Keep mocking it!) but we got ostriches. Ostriches make everything better. Share this post Link to post Share on other sites
TheBrickPal Posted February 28, 2014 (edited) I am really worried about this move. Having the biggest toy company in the world buy the second biggest contruction toy after LEGO could seriously hurt sales, especially if they acquire some huge licenses. I hope LEGO realizes this and steps it up a bit. Not that they really need to! You know what's coming next... Disney buying LEGO. Make it happen! Edited February 28, 2014 by Puffle Pal26 Share this post Link to post Share on other sites
B-Lister Posted February 28, 2014 (edited) Mattel buying Megabloks means one thing. Mattel bought Megabloks. Anybody worried that Megabloks can challenge the throne? I can't wait for that to not happen. Many have tried. Tyco, Loc Bloks, BTR, C3, Kre-O, Mega Bloks. All have failed. In this game, if you aren't Lego, it's a race for second place. You are going against 60 years of brand recognition, quality, and the originator of the system you are attempting to duplicate. Mega Bloks has no quality. Mattel is the biggest manufacturer in the world. But in this game, that strength is a weakness. Mattel makes Hot Wheels, Barbie, Monster High, WWE, and several other lines. Lego makes Lego. When your development is stretched across multiple formats, you are not able to innovate or compete. This battle was won before the first shot was fired. Edited February 28, 2014 by Mister Blisterfists Share this post Link to post Share on other sites
meyerc13 Posted February 28, 2014 Mock Prince of Persia if you must (seriously, it was awful! Keep mocking it!) but we got ostriches. Ostriches make everything better. And camels! Don't get me wrong, I've found something to like in all of these themes, but I've noticed that my kids who are 8 and 6 don't care about any of these themes because they are too young to see the movies. Friends, City, Chima, Ninjago... those are all themes they play with all of the time. Even though they bought Lone Ranger sets with their own money, after the initial novelty of a new theme passed, they went into a storage bin and haven't come out again. My kids love The LEGO Movie, because they could actually go see it. Sets are flying off the shelves. I think there is a lesson to be learned. The only reason Star Wars and Super Hero sets sell to kids is because those themes are timeless... every kid knows who Batman is whether they've seen a movie or not. How many of those kids knew who Dastan or the Lone Ranger were? My kids are probably the exception on this last one becuase I've shown them the old TV Show... I think most kids do not. I don't understand why the people who work in LEGO's licensing department can't figure this out. Oh well, as you said at least we got ostriches (and camels)... a win for AFOLs if not a smashing success for LEGO. Share this post Link to post Share on other sites
Dayton Posted February 28, 2014 Mattel buying Megabloks means one thing. Mattel bought Megabloks. Anybody worried that Megabloks can challenge the throne? I can't wait for that to not happen. Many have tried. Tyco, Loc Bloks, BTR, C3, Kre-O, Mega Bloks. All have failed. In this game, if you aren't Lego, it's a race for second place. You are going against 60 years of brand recognition, quality, and the originator of the system you are attempting to duplicate. Mega Bloks has no quality. Mattel is the biggest manufacturer in the world. But in this game, that strength is a weakness. Mattel makes Hot Wheels, Barbie, Monster High, WWE, and several other lines. Lego makes Lego. When your development is stretched across multiple formats, you are not able to innovate or compete. This battle was won before the first shot was fired. I couldn't of said it better myself. Share this post Link to post Share on other sites
dr_spock Posted February 28, 2014 Another Canadian company sold to a multinational is how I see it. Share this post Link to post Share on other sites
Im a brickmaster. Posted February 28, 2014 Well! I certainly hope they drive whats left of the company into the ground! MMWHAAAAA!!!!! BHAAAAWWAAAA!!!!! Share this post Link to post Share on other sites
jonwil Posted February 28, 2014 My kids love The LEGO Movie, because they could actually go see it. Sets are flying off the shelves. I think there is a lesson to be learned. The only reason Star Wars and Super Hero sets sell to kids is because those themes are timeless... every kid knows who Batman is whether they've seen a movie or not. How many of those kids knew who Dastan or the Lone Ranger were? My kids are probably the exception on this last one becuase I've shown them the old TV Show... I think most kids do not. I don't understand why the people who work in LEGO's licensing department can't figure this out. +1 to this, LEGO needs to stop licensing things like Lone Ranger and Prince of Persia. Heck, even Indiana Jones may not have been the best idea. Look towards licenses that have staying power, genuine kid appeal and a big universe to draw from. Super Heroes (both DC and Marvel) makes a lot of sense as there is a vast universe to draw from, plenty of kid-appropriate/kid-targeted content (the cartoon shows especially) and new content appearing all the time. Surprised LEGO didn't go anywhere with their Ben 10 license, its very much kid-appropriate, popular with kids of the right age and still pumping out new content last time I looked. Plus with the huge number of aliens that watch thing can transform into, there would never be a shortage of set ideas. (although it may be that the license was canceled/taken off them based on complaints from other licensees of the property rather than abandoned by TLG) Share this post Link to post Share on other sites
meyerc13 Posted February 28, 2014 Mattel buying Megabloks means one thing. Mattel bought Megabloks. Anybody worried that Megabloks can challenge the throne? I can't wait for that to not happen. You are correct in that Mattel Megabloks won't pass LEGO as the number one building company, however you are being naive if you believe it won't impact LEGO at all. Walk into any toy store and you can see how many aisles of toys Mattel has, which puts them into a better bargaining position than Megabloks with major retailers. As I mentioned above, Mattel is also in a better position to bargain on licensing deals. Not only can they bring building toys for a property, but action figures, games, etc. Will this impact us as the customer? No doubt. There will be licensed properties that we'd love to see (Dr. Who, Star Trek are two examples from the recent past) made by LEGO that we won't see because Mattel/Megabloks will get them instead. So LEGO will fight for shelf space, fight for licenses, and ultimately they will lose some portion of their sales to Mattel if Mattel can steal lucrative licenses out from under LEGO. Just this week LEGO's annual report came out and the business journals are wondering what the rapid slow down in growth means... in 2012 LEGO sales were skyrocketing, they are still increasing but not at nearly the same pace. Meanwhile LEGO's spending on manufacturing capacity has been substantial. I'm sure some LEGO execs are probably getting nervous now, they were spending as if the LEGO boom would never end, but now perhaps it may be. Add this announcement and I'm sure LEGO is getting a bit nervous. Share this post Link to post Share on other sites
B-Lister Posted February 28, 2014 (edited) You're correct. The only thing Mattel can gain, is to tie up licenses that the competition might pursue. But that, too is a losing game. (And one Lego can win by employing good market research) Toy Biz first held the interlocking brick license for LOTR. Mega Bloks held the license for POTC. Mega Bloks held the license for Marvel. Where did they end up in the end? People don't want Marvel Megabloks. They want Marvel Lego. But if they have no choice, they'll take what they can get until something better comes along. That's where longevity has its advantages. Lego can afford to wait out the competition, because as soon as that license lapses, the fanbase follows the property. No matter how many licenses Mattel ties up, if the product is bad, people won't buy. And the product is bad. Lego doesn't have to fight for shelf space. The brand is strong, and if you're that worried that Mattel can topple this giant, don't be. Mattel isn't even playing the same sport. And you can't win a baseball game using a hockey stick. You also forget three simple words. The. Lego. Movie. Relax. They have nothing to fear. Neither do you. Edited February 28, 2014 by Mister Blisterfists Share this post Link to post Share on other sites
Super Goblin Posted March 1, 2014 This is not a good thing for Lego. Mattel already has a big licensed agreement with DC so this could cause Lego to loose that to Mattel when the contract is up. Share this post Link to post Share on other sites
Faefrost Posted March 1, 2014 Really the only problem area in this is in the war for shelf space. Mattel can demand much more product and prominant display positions in stores than Megabloks ever could on their own. But unless Mattel is prepared to radically strip and redo Megabloks by fully recapitalizing their factories around ABS, it will continue to be a non issue long term. megablok's long time quality issue revolves around their choice of plastic. Polystyrene. It is cheaper to make, cast and make tooling for. But it's quality for this type of product is appallingly bad. It warps, it breacks, it is too soft to hold precision for long, etc. Until that is corrected for they will not be challenging Lego. Before this badly damages Lego it will have serious implications for KreO and Hasbro. TRU and Target will strip and sacrifice Kre-O shelf space long before they touch Lego. Lego is too much of a cash cow. Which leaves open another interesting possibility... Given that TLG is fully privately held, and has a very high degree of cash on hand, how might TLG react to this action by Mattel? Given that the main threat stems not so much from the Megabloks product itself, but from Mattel's ability to leverage its large #1 market share at the retailer level, how could Lego effectively counter that? One way would be by displacing Mattel as #1 by acquisition. There were rumors floating around late last year that Hasbro might have been in talks to sell to Disney. Which didn't make a lot of sense as Disney has been divesting the oddball side businesses in favor of contract partners (see Lucasarts closed and all game contracts given to EA), but might Lego not be considering buying Hasbro? That would put Bilund dead square in the middle of Mattel's turf. And give them more than enough leverage to brikblok Mattel and Megabloks. Share this post Link to post Share on other sites
just2good Posted March 1, 2014 Actually, just announced yesterday, LEGO is the #1 toy company. I'd link some sources, but I'm out at the moment. So we won't have to worry. Share this post Link to post Share on other sites
B-Lister Posted March 1, 2014 This is not a good thing for Lego. Mattel already has a big licensed agreement with DC so this could cause Lego to loose that to Mattel when the contract is up. The way these things go is that Lego would be given the right to renegotiate the contract. If Mattel bids for it, Lego would have to match or beat Mattel's offer. Which means if Mattel got the DC license, it would be because Lego let them, not because DC gave it to them. Share this post Link to post Share on other sites
Deathleech Posted March 1, 2014 No. Have you seen some of the quality Mattel puts out? Well I was just thinking about Kre-O and how their quality seems decent. It's at least MUCH better than Mega Bloks. Maybe having a bigger company own Mega Bloks would lead to them upping the quality of their product? Who knows. +1 to this, LEGO needs to stop licensing things like Lone Ranger and Prince of Persia. Heck, even Indiana Jones may not have been the best idea. Look towards licenses that have staying power, genuine kid appeal and a big universe to draw from. Super Heroes (both DC and Marvel) makes a lot of sense as there is a vast universe to draw from, plenty of kid-appropriate/kid-targeted content (the cartoon shows especially) and new content appearing all the time. There are only so many cartoons and kid movies Lego can get the license for before they start getting a little redundant. I think having a wide variety of licenses works better than just scooping up all the 6-8 year old aimed ones. Also I know AFOLs aren't a huge portion of Lego's overall sales, but they still account for something. I actually would like to see Lego do some more really adult oriented themes and just have them be limited runs and offered D2C on their site. Kind of like the Simpsons but even more adult oriented. Game of Thrones, Vikings, etc. I know it will probably never happen but it would be cool for us AFOLs. Share this post Link to post Share on other sites
B-Lister Posted March 1, 2014 Lego licensing Lone Ranger and Prince of Persia probably looked good on paper. They're both Disney properties, which are usually safe bets. But they had no way of knowing at the time, that the movies would bomb. Share this post Link to post Share on other sites
