MATTEL OBTAINS LICENSE FOR TOYS DEAL TO SHORE UP OFFERINGS FOR BOYS.

Byline: Brent Hopkins Staff Writer

EL SEGUNDO - Mattel Inc. had some looney news for investors on Tuesday that could prove to be super for profits.

The toy maker announced a multiyear deal with Warner Bros. Worldwide Consumer Products, giving it the master toy license to handle the Looney Tunes, Baby Looney Tunes, Justice League, Batman and Superman properties. Neither side would disclose terms, but those familiar with the deal said it could bring Mattel as much as $600 million in revenue within five years.

The deal shores up the footing considerably for Mattel, which has been trying to beef up its boys' action figure division in recent years by adding Bob the Builder and a reinvigorated He-Man.

``There's still work to do, but given the strength of what they have so far with Batman, Superman and Justice League, they're 80 percent of the way,'' said Bret Jordan, director of consumer products research for the Boston-based analyst firm Advest Inc. ``If Hasbro threw out GI Joe to them, they'd be all done. It's certainly a step in the right direction.''

Mattel sought out the block of brands, bid away from rival Hasbro, to attract proven properties. The firm had found success in the past with the brands, said Dan Romanelli, WBWCP's president, pointing out that Mattel served as original licensee for Looney Tunes in the '60s, and that Tyco, subsequently acquired by the firm, handled Baby Looney Tunes.

``One place we wanted to focus on was getting long-term potential,'' said Sara Rosales, Mattel's director of public relations. ``We don't want a one-off toy from the movie of the week. We want to build brands that last, with global appeal and broad demographic interest.''

With Justice League and both Looney Tunes properties well established, and a Batman-Superman movie in the works, Romanelli said the brands have room to grow under their new shepherd.

``There's so much happening with these brands right now,'' he said. ``We think there's tremendous opportunity for creativity.''