JAKKS Pacific Inc. Announces Joint Venture With THQ Inc. to Develop World Wrestling Federation Video Games
MALIBU, Calif.--(BUSINESS WIRE)--June 11, 1998--JAKKS Pacific Inc. (NASDAQ/NM:JAKK) and THQ Inc. (NASDAQ/NM:THQI) Thursday announced that a new 50/50 joint venture company they have formed has signed a 10-year license agreement with Titan Sports Inc. granting the joint venture exclusive worldwide rights to publish World Wrestling Federation(R)(WWF) electronic games on all platforms.
Under the agreement, THQ/JAKKS Pacific LLC will design, develop, manufacture and market WWF video games. JAKKS Pacific and THQ will co-manage the marketing and branding of the WWF interactive game line. THQ will oversee product development and sales. Plans are to publish at least two WWF games per year during the term of the license, with the first games currently slated for release in late fourth quarter 1999.
"The combination of our two companies, with our proven track records in wrestling toys and gaming products, creates a well-rounded and versatile licensee that can raise the wrestling niche to new and exciting heights," said Jack Friedman, chairman and chief executive officer of JAKKS Pacific.
"We are delighted to have a great game company such as THQ as our partner," added Stephen Berman, president and chief operating officer of JAKKS Pacific. "With the surging interest in WWF wrestling and sales of wrestling video games approaching one billion dollars over the past nine years, we believe this partnership offers tremendous opportunities.
"It is a natural combination of JAKKS' expertise with WWF action figures and THQ's experience in making wrestling games. Together, JAKKS and THQ should be able to take this license to the next level of popularity."
Commented Jim Bell, senior vice president, licensing and merchandising for Titan Sports, "We have enjoyed a great relationship with JAKKS Pacific over the past several years and recognized them as the obvious choice for this exciting new phase for WWF. We are confident that this new partnership with THQ will produce quality video products for the millions of WWF fans out there."
"We are extremely excited to have this long-term opportunity to develop world-class wrestling games for the top-rated WWF in conjunction with JAKKS Pacific," said Brian J. Farrell, president and chief executive officer of THQ. Farrell also noted that THQ has already shipped more than two million copies of World Championship Wrestling titles on the Nintendo 64 and PlayStation game systems.
Titan Sports, the parent company of the World Wrestling Federation (WWF), is a privately owned marketing and communications company with corporate offices located at its world headquarters in Stamford, Conn. The WWF's goal has always been to provide quality family entertainment both live in arenas and on television around the world.
Under the guidance and creative force of Vince McMahon, Titan's chairman, the WWF has grown from a northeastern regional business to an international television and marketing enterprise.
The business structure in place to create, market and manage this global WWF sports-entertainment property consists of both national and international sales, marketing, promotions, television distribution, properties (domestic and international), publishing, pay-per-view and public relations, making the WWF the leader in sports-entertainment for more than 50 years.
THQ is a leading developer, publisher and distributor of interactive entertainment software worldwide for a variety of hardware platforms, including PC CD-ROM, and those manufactured by Nintendo, Sony and Sega.
JAKKS Pacific and its affiliates develop, manufacture and market toys and related products for children, including action figures featuring characters from the World Wrestling Federation, die-cast collectible and toy vehicles under the Road Champs(R) and Remco(R) brand names, Child Guidance(R) pre-school toys and a line of fashion dolls and accessories.
"Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: This news release contains forward-looking statements. Such statements reflect the current views of the company with respect to future events and are subject to certain risks, uncertainties and assumptions. Although the company believes that the expectations reflected in such forward-looking statements are reasonable, should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual future results or events may vary materially from those described herein.
CONTACT:
JAKKS Pacific Inc. , Malibu
Joel Bennett, 310/456-7799
or
Silverman Heller Associates, Los Angeles
Lori Parks or Eugene Heller, 310/208-2550
or
THQ Inc.
Deborah Lake, 818/591-1310 |
