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Funko (FNKO) & Goliath Forge Exclusive Global Gaming Alliance

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Pop culture aficionados and board game enthusiasts alike are in for a treat as Funko, Inc. (FNKO - Free Report) and Goliath, the renowned family-owned global game company, join forces in an exclusive worldwide license and distribution agreement. The deal encompasses Funko's extensive portfolio of games under the Funko Games brand, signaling a strategic move to elevate the gaming experience.

In a significant move, Goliath has not only secured the rights to distribute Funko's current lineup of games and puzzles globally but also acquired the assets of Funko's board game development studio, formerly known as Forrest-Pruzan Creative. This acquisition includes the celebrated board game design team, Prospero Hall, reinforcing Goliath's commitment to innovation in the gaming industry.

The multi-year agreement positions Goliath as the exclusive worldwide distributor of Funko's games and puzzles, with plans to collaborate on the development and distribution of exciting new additions to the Funko Games brand. The partnership involves an initial payment from Goliath, followed by future minimum guaranteed royalty payments, underlining the shared commitment to the success of the venture.

Jochanan Golad, CEO of Goliath, expressed enthusiasm about the collaboration, stating, "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."

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As part of the deal, Goliath plans to leverage its extensive experience in the games and toys market to market key games globally. One of the highlights is the launch of "Bitty Pop! Chase," an exciting new game featuring Funko's popular Bitty Pop! miniature collectible characters.

Mike Lunsford, Interim CEO of Funko, emphasized the strategic nature of the transaction, aligning with the company's goal of streamlining operations. The proceeds from the deal will be directed toward debt reduction, capitalizing on Goliath's size, scale and market expertise to strengthen Funko's position in the board game category.

This exclusive alliance between Funko and Goliath marks a significant chapter in the gaming industry, promising enthusiasts a plethora of new and innovative gaming experiences on a global scale.

Shares of Funko, which carries a Zacks Rank #4 (Sell), have declined 8.5% against the industry’s rise of 9%.

3 Stocks to Consider

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Hibbett, which is engaged in the retail of athletic-inspired fashion products, sports a Zacks Rank #1 (Strong Buy). HIBB has a trailing four-quarter earnings surprise of 24.2%, on average. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for Hibbett’s current financial-year sales suggests growth of around 1.7% from the year-ago reported numbers.

GameStop, a specialty retailer that provides games and entertainment products through its stores and ecommerce platforms, currently sports a Zacks Rank #1. GME has a trailing four-quarter earnings surprise of 99.4%, on average.

The Zacks Consensus Estimate for GameStop’s current fiscal-year earnings suggests growth of 107.8% from the year-ago reported numbers.

Abercrombie & Fitch, which operates as a specialty retailer, currently sports a Zacks Rank #1. Abercrombie & Fitch has a trailing four-quarter earnings surprise of 713%, on average.

The Zacks Consensus Estimate for Abercrombie & Fitch’s current financial-year sales suggests growth of 15.1% from the year-ago reported numbers.

Disclaimer: This article has been written with the assistance of Generative AI. However, the author has reviewed, revised, supplemented, and rewritten parts of this content to ensure its originality and the precision of the incorporated information.

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