WASHINGTON — A Time Warner Inc. affiliate received warrants to purchase 500,000 shares of Hasbro Inc. common stock as partial payment for the licensing rights to products based on the popular Harry Potter children's books.
Hasbro, the world's second largest toy maker, received a contract from Warner Bros. in February to make trading cards, electronic games, and candy based on characters in the first two Harry Potter books, written by J.K. Rowling. The two companies didn't disclose the terms of the agreement.
However, in a filing with the Securities and Exchange Commission Friday, Hasbro disclosed that Warner Bros., a unit of Time Warner, received warrants to purchase the 500,000 Hasbro shares as partial payment. The filing didn't disclose the price at which the warrants entitle Warner Bros. to purchase the stock.
Hasbro, based in Pawtucket, Rhode Island, said the license entitles it to also use characters from two Harry Potter movies that Warner Bros. plans to develop.
Time Warner can exercise the warrants when the first of these movies is released in the U.S. The release is scheduled for the latter part of next year, according to the filing.
Hasbro shares rose 6 cents to 11.44 today. The stock closed at 15.06 on Feb. 11, the day that Hasbro and Warner Bros. announced the licensing agreement.
Mattel Inc., the world's largest toy maker, won the bidding war to make toys — as opposed to cards and electronic games — based on the book series, which has been published in at least 115 countries and 28 languages.