Mattel announced today that they have purchased Mega Brands for $460M. As many of you know, Mega Brands makes the competing construction toy brand, Mega Bloks. The competition should heat up now that Mattel, the #1 toy company, is directly competing with LEGO, the #2 toy company.
Licensing will be a bigger area of competition now. In the past, LEGO has managed to get licenses that were previously affiliated with MEGA Bloks such as Disney, Pirates of the Carribean and Teenage Mutant Ninja Turtles. With the financial clout of Mattel, it’ll be harder for LEGO to make a play for future potential licenses. LEGO and Mattel are also both licensees of Disney Princess and DC Universe so we could see a fight when those contracts are up for renewal.