‘Transformers 4’ Is a Hit -- We Reveal the 2 Biggest Winners

Hint: neither Hasbro nor Viacom make the list.

Jul 13, 2014 at 8:10AM

Optimus Prime Transformers Age Of Extinction

Optimus Prime is taming dinobots and the box office in Transformers 4. Credit: Paramount Pictures.

Transformers 4 -- otherwise known as Transformers: Age of Extinction -- has not only secured 2014's biggest opening weekend at the U.S. box office, but it's also a huge winner in China. The latest installment in Viacom's (NASDAQ:VIAB) signature franchise recently surpassed Avatar as the biggest-ever box office draw in the Middle Kingdom. Who stands to benefit from this Decepticon-smashing performance?

Guest host Alison Southwick put this question to Fool analysts Nathan Alderman and Tim Beyers in this  episode of 1-Up On Wall Street, The Motley Fool's web show in which we talk about the big-money names behind your favorite technology, movies, toys, video games, comics, and more.

Nathan says that, while you would expect Hasbro (NASDAQ:HAS) to be rolling in dough, history shows that's not the case. Licensing of Hasbro brands such as "Transformers" and "My Little Pony" accounted for just 4.67% and 9.73% of revenue and profit, respectively, in 2013. Those totals are up incrementally (i.e., 2.27% and 7.52%) from 2007, when the first Transformers movie found its way to theaters.

Tim adds that Hasbro last year agreed to over $300 million in guaranteed royalty payments to Walt Disney for the right to make and sell toys based on Marvel and Star Wars characters. Both lines appear to dwarf the 30-year-old Transformers line. What's more, a recent study of Viacom's SEC filings found that Marvel movies were a huge contributor to Viacom's filmed entertainment business in years past. They aren't anymore, placing a bigger burden on the Transformers movie franchise.

So who are Transformers 4's biggest winners if not Hasbro and Viacom? Click the video to watch as Alison puts Nathan and Tim on the spot, and then leave a comment below tell us what you thought of the movie. You can also follow us on Twitter for more segments and regular geek news updates!

The one device that could change everything
Imagine the multi-billion dollar sales potential behind a product that can revolutionize the way the world shops and interacts with its favorite brands every day. Now picture one small, under-the radar company at the epicenter of this revolution that makes this all possible. And its stock price has nearly an unlimited runway ahead for early, in-the-know investors. To be one of them and hop aboard this stock before it takes off, just click here.  

Neither Alison Southwick nor Nathan Alderman owned shares in any of the companies mentioned in this article at the time of publication. Tim Beyers owned shares of Walt Disney. The Motley Fool recommends Hasbro and Walt Disney. The Motley Fool owns shares of Hasbro and Walt Disney. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information