Funko and Goliath Announce Exclusive Global Deal for Funko Games
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The exclusive licensing and distribution agreement between Funko, Inc. and Goliath represents a significant strategic move within the toy and game industry. This partnership leverages Goliath's extensive distribution network and experience in game sales, potentially expanding Funko's market reach. The acquisition of Funko's board game development studio and the Prospero Hall design team by Goliath can be seen as a consolidation effort, aiming to streamline operations and focus on core competencies. This move might result in increased efficiency and innovation in game development, benefiting both companies.
From a market perspective, this deal could enhance Goliath's product portfolio and reinforce its position in the market, while Funko can capitalize on Goliath's expertise to ensure its games achieve broader market penetration. The financial arrangement, including an initial payment and future minimum guaranteed royalty payments, suggests a commitment to a long-term partnership with shared financial interests.
The undisclosed financial terms of the agreement between Funko and Goliath make it challenging to quantify the immediate impact on Funko's financials. However, the structure of the deal, with an initial payment and future royalties, indicates a potential steady revenue stream for Funko. This could improve the predictability of Funko's earnings from its games portfolio, which is beneficial for financial planning and stability.
For Goliath, the acquisition of intellectual property and inventory is a capital investment that could lead to future revenue growth. Investors should monitor the performance of the newly acquired assets and the effectiveness of Goliath's marketing strategies for Funko's games. The success of this partnership will depend on the ability to innovate and capture consumer interest in a competitive market.
The agreement between Funko and Goliath reflects a strategic brand expansion and collaboration that can potentially enhance the visibility and appeal of Funko's games. Goliath's plan to immediately commence marketing key games globally indicates an aggressive strategy to capitalize on the Funko brand, which is synonymous with pop culture and collectibles. This could resonate well with the target demographic, driving sales and strengthening brand loyalty.
The integration of Forrest-Pruzan Creative and Prospero Hall under Goliath's umbrella may also lead to a fusion of creative talents, fostering innovation in game design. This could result in unique product offerings that stand out in the marketplace. The brand synergy between the two companies, combined with Goliath's century-long experience in game sales, could create a formidable force in the industry.
Under the multi-year agreement, Goliath will be the exclusive worldwide distributor of Funko’s current catalog of games and puzzles and has agreed to collaborate with Funko to develop and distribute new games and puzzles. The agreement includes an initial payment from Goliath, followed by future minimum guaranteed royalty payments for the use of the Funko brand. Additionally, Goliath will acquire Funko’s current inventory of board games and puzzles, as well as rights to intellectual property related to the studio.
“Funko Games is a highly regarded brand that includes hundreds of board games recently created as well as a great portfolio from Forrest-Pruzan. We look forward to bringing the Funko brand and style to the game aisle in new and innovative ways,” said Goliath’s Chief Executive Officer, Jochanan Golad. “With Pressman’s 101 years and Goliath’s 43 years of selling games, we believe we’re a perfect fit to partner with Funko to develop and distribute games on a global level. We plan to commence marketing several key games around the world immediately. We’re especially thrilled about our plan to bring to market a new and exciting game called Bitty Pop!® Chase, which includes Funko’s popular Bitty Pop!® miniature collectible characters.”
Funko Interim Chief Executive Officer, Mike Lunsford, said, “The transaction is designed to keep with our previously stated goal of streamlining our business by focusing on our core assets. We intend to use the proceeds from this transaction to reduce our debt. We believe that Goliath’s size and scale, as well as their intimate knowledge of the global games and toys market, make them a strong partner for Funko in the board game category.”
Goliath plans to showcase many of the Funko board games at the upcoming 2024 toy fairs in
About Goliath:
Goliath was founded in 1980 and is one of the few family-owned global toy and game companies. Goliath is a creator, manufacturer and distributor of a broad range of products with offices in 15 countries and exporting games to over 100 countries. Example brands include Rummikub, Wahu, Sequence, Phlat Ball, Triominos, Gator Golf, Pop the Pig, Doggie Doo, Gooey Looey, Let’s Go Fishin, and The Floor is Lava.
Goliath has seen substantial growth with the acquisitions of Pressman, JAX Games, Endless Games, Tucker Toys in the US, Vivid Toy Group in the
Goliath is a global leader in promoted games and operates across all classes of the games category. For more information, please visit www.goliathgroup.com.
About Funko:
Headquartered in
Forward Looking Statements
This press release contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. All statements contained in this press release that do not relate to matters of historical fact should be considered forward-looking statements, including statements regarding Funko’s agreements with Goliath, the use of funds from the Goliath transaction, and future product collaboration with Goliath. These forward-looking statements are based on management’s current expectations. These statements are neither promises nor guarantees, but involve known and unknown risks, uncertainties and other important factors that may cause our actual results, performance or achievements to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements, including, but not limited to: Funko’s ability to successfully collaborate with Goliath on future products. These and other important factors discussed under the caption “Risk Factors” in our quarterly report on Form 10-Q for the quarter ended September 30, 2023, and our other filings with the Securities and Exchange Commission could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. While we may elect to update such forward-looking statements at some point in the future, we disclaim any obligation to do so, even if subsequent events cause our views to change. These forward-looking statements should not be relied upon as representing our views as of any date subsequent to the date of this press release.
View source version on businesswire.com: https://www.businesswire.com/news/home/20240117491653/en/
Funko Contacts:
Investor Relations
Investorrelations@funko.com
Media Inquiries:
Emily Zalenski
Emily.zalenski@funko.com
Shawna Lynch
42West for Funko
Shawna_lynch@bhimpact.com
Goliath Contacts:
Media Inquiries:
Kotomi Nanjo
k.nanjo@goliathgroup.com
Donna MacNeil
dmacneil@beaconmediagrp.com
Source: Funko, Inc.
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