USA toymaker Hasbro makes new approach to buy Mattel

Marcus Newton
November 12, 2017

If a deal were reached, it would create a huge powerhouse in the toy industry, uniting Monopoly, Nerf and My Little Pony brands from Hasbro with Mattel's Hot Wheels and iconic Barbie. A combined company would have more pricing power to negotiate with entertainment studios over TV and movie franchises.

Hasbro's approach was made recently, the WSJ said, citing one person.

Mattel's stance toward Hasbro in this overture is not clear, and it remains far from certain that a deal will materialize, the source said, asking not to be identified because the matter is confidential. The two companies declined to comment to the outlet, and the likelihood of the deal's success is unclear.

Hasbro is one of the largest toy companies in the world (after Lego), and according to a report in The Wall Street Journal, it recently made an offer to take over its chief rival, Mattel.

Shares in Mattel reacted positively to the news as they shot up by 24% during Friday afterhours trading.

More news: US, S. Korea begin joint Naval drills
More news: Eminem drops song with Beyoncé
More news: Vettel: Tough to beat Mercedes

Hasbro, Inc. shares closed at $91.45 on Friday, up $2.76 (+3.11%).

The bankruptcy filing in September by Toy "R" Us, the largest toy retailer in the USA, highlighted struggles that the sector is facing including children's preferences shifting from traditional toys to electronics and online competition increasing.

The two companies have engaged in talks several times over the years including in 1996 and again sometime in late 2015.

Talks that the two may join forces has been long rumored, as Mattel's stock has fallen a significant 52 percent over the past year, leaving its market value at $5 billion.

Other reports by MaliBehiribAe

Discuss This Article

FOLLOW OUR NEWSPAPER