CINCINNATI -- Gibson Greetings, Inc. will have exclusive use of Walt Disney characters on its greeting cards and also receive $7.5 million from Disney because Disney pulled out of last year's proposed merger, it was announced Monday.
Gibson President Tom Cooney predicted the new licensing agreement with Disney will make Gibson 'the strongest marketeer of licensed products in the greeting card industry.'
Gibson, which has licensing arrangements with several other firms and markets 'Garfield' cat and Sesame Street characters, is currently the nation's third largest greeting card company behind Hallmark and American Greetings.
A Gibson official said it is hoped the Disney characters will help Gibson catch the two frontrunners. Disney previously licensed its characters to Hallmark, but that contract has expired.
Last June, Disney announced that it intended to buy Gibson for $314 million. However, some stockholders complained the price was too high and two months later Disney backed out of the deal.
'For exercising its right to terminate the merger, Disney will pay Gibson $7.5 million,' officials of the two firms said.
In addition to Monday's announcement that Gibson will have exclusive use of Disney characters on its cards, it also was agreed that Cleo, Gibson's gift wrap division, will continue to feature Disney characters on its products as part of an ongoing licensing program. Cleo has used Disney characters on wrapping for more than 20 years.
Gibson also will become a retail 'participant' at Walt Disney World in Florida and Disneyland in California as a result of the licensing agreement. Being a 'participant' means Gibson products will be sold at both parks.
To help promote the new Gibson-Disney link, a 'Sweepstakes' promotion will be launched at stores carrying Gibson products. Prizes will include family vacation trips to Disney World and free Disney merchandise.
'We look forward to this exciting opportunity to work together with Gibson in new marketing areas,' said Barton Boyd, Disney's executive vice president for consumer products. 'The new combined marketing thrust of Disney and Gibson only can enhance our rewarding, long-term relationship.'
