While I can’t say it wasn’t somewhat expected (given the issues that both Mattel and Hasbro are struggling with) – the timing is definitely a surprise. Mattel has officially lost the license to produce DC’s action figures. Going forward, these figures will be produced by Spin Master toys.
A bit about Spin Master:
A smaller toy company — at least when compared to giants like Mattel or Hasbro — Spin Master is about to launch an official line of Monster Jam trucks. The company was recently named atop the list of Licensing category in Kidscreen‘s “2018 Hot 50 Companies” list.
“Partnering with an iconic brand like DC is a major milestone for Spin Master and is part of our strategy to invest in successful licenses to further grow and diversify our business,” says Ben Gadbois, Spin Master COO in a statement. “Children everywhere have been entertained and inspired by DC Super Heroes™ and Super-Villains™ for more than 80 years and we’re honoured to be a part of that storytelling and imagined play. We are looking forward to bringing Spin Master’s renowned innovation to the toy line and to sharing more details about this exciting partnership in the new year.”
Last year, Spin Master reported $1.553 billion in revenue while Mattel made north of $4.88b. Hasbro dwarfed both companies by hauling in $5.21b in 2017.
Amidst the news of the major license loss, shares of Mattel ($MAT) dropped significantly. Already performing at an 18-year low, Mattel shares dropped an additional 4.5 percent at the end of business on Monday. Mattel stock has a 40-percent year-to-day loss.
From the Spin Master Wikipedia page:
Spin Master is a Canadian global toy and entertainment company that has been designing, developing, manufacturing, and marketing consumer products for children around the world since 1994. Its brands include 2009 Toy of the Year Bakugan, Gund, Etch A Sketch, 2016 Innovative Toy of the Year Erector Set by Meccano, Air Hogs, 2018 Property of the Year PAW Patrol, Aquadoodle, Tech Deck, 2017 Toy of the Year Hatchimals and 2015 Toy of the Year, Zoomer.  Spin Master employs over 1600 people globally with offices in Canada, United States, Mexico, France, Italy, United Kingdom, Slovakia, Poland, Germany, Sweden, the Netherlands, China, Hong Kong, Japan, Vietnam and Australia. 
Since 2002, Spin Master has received 92 TIA Toy of The Year (TOTY) nominations with 28 wins across a variety of product categories, including 13 TOTY nominations for Innovative Toy of the Year, more than any other toy company.