No Happy Holidays for Hasbro After Toys 'R' Us Collapse
*By Bridgette Webb*
These are troubling times for Hasbro.
The toy maker announced Monday that it will lay off up to 10 percent of its employees as it ー and the industry at large ー adjusts to a tougher marketplace without Toys "R" Us.
"The moment of truth has arrived to see if their business can survive this type of shock," Nathan Bomey, business reporter for USA Today, said Monday in an interview on Cheddar.
"I don't think that anyone expects them to face a serious crisis, but this is a test as powers shift to companies like Amazon ($AMZN) and Walmart ($WMT) and Target ($TGT) in the toy industry."
Hasbro ($HAS) has not yet disclosed how many of its 5,400 global employees will be out of the job. But the company said that it expects the cuts to save between $30 million to $40 million a year by 2020.
The company also reported revenue of $1.57 billion for its latest quarter, way below analysts' expectations of $1.71 billion and down 12 percent from a year ago. Sales internationally were down 24 percent.
With the troubles at Toys "R" Us, many have suggested that toy makers re-direct their efforts to bigger sellers like Amazon and Walmart. But Bomey said the real issue is not where companies sell their products, but rather if those products still hold the same demand.
"\[What matters\] is ultimately if kids want to play with toys at all," he said.
"\[It's\] an existential crisis, if you will, because with iPads and iPhones taking over kids' playtime, ultimately they will have to figure out if they can create the digital products that will connect with kids."
For full interview [click here](https://cheddar.com/videos/hasbro-is-still-hurting-from-toys-r-us-closure).
Disney content has gone dark on YouTube TV, leaving subscribers of the Google-owned live streaming platform without access to major networks like ESPN and ABC. That’s because the companies have failed to reach a new licensing deal to keep Disney channels on YouTube TV. Depending on how long it lasts, the dispute could particularly impact coverage of U.S. college football matchups over the weekend — on top of other news and entertainment disruptions that have already arrived. In the meantime, YouTube TV subscribers who want to watch Disney channels could have little choice other than turning to the company’s own platforms, which come with their own price tags.
President Donald Trump said he has decided to lower his combined tariff rates on imports of Chinese goods to 47% after talks with Chinese leader Xi Jinping on curbing fentanyl trafficking.
Universal Music Group and AI platform Udio have settled a copyright lawsuit and will collaborate on a new music creation and streaming platform. The companies announced on Wednesday that they reached a compensatory legal settlement and new licensing agreements. These agreements aim to provide more revenue opportunities for Universal's artists and songwriters. The rise of AI song generation tools like Udio has disrupted the music streaming industry, leading to accusations from record labels. This deal marks the first since Universal and others sued Udio and Suno last year. Financial terms of the settlement weren't disclosed.
