(Reuters) - Media company Marvel Entertainment Inc said Hasbro Inc will retain toy-licensing rights for its characters until 2017 in an deal that guarantees Marvel $100 million in royalties and gives it the potential to earn up to an additional $140 million.
The deal will allow Hasbro, the No. 2 U.S. toymaker, to continue to make toys and games based on new Marvel and Sony Corp-owned Columbia Pictures theatrical releases, as well as Marvel's portfolio of superhero characters, which includes Spider-Man, Iron Man and X-Men.
Marvel has licensed theatrical rights of Spider-Man, its most popular character, to Sony.
The additional $140 million in royalty guarantees is contingent upon the release during the extension period of Marvel character-based films that satisfy certain criteria.
Marvel's current agreement with Hasbro runs through 2011.
This year, Hasbro plans to launch products based on the May release of "X-Men Origins: Wolverine," a movie from News Corp's 20th Century Fox that is based on Marvel characters.
In 2009, it will also sell toys based on the "G.I. Joe - The Rise of the Cobra" and "Transformers - Revenge of the Fallen" movies.
The agreement will be a plus for Hasbro, which has an edge over larger rival Mattel Inc in the market for movie-related toys.
While Marvel has no self-produced films scheduled for 2009, it has two films, including a sequel to its successful "Iron Man," slated for 2010.
Marvel shares closed at $25.31 Friday on the New York Stock Exchange. Hasbro closed at $23.80.
(Reporting by S. John Tilak in Bangalore, Aarthi Sivaraman in New York; Editing by Vinu Pilakkott)
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