Hasbro reportedly offered to buy Mattel

Chelsea West
November 12, 2017

US toymaker Hasbro Inc (HAS.O) has made a takeover approach for rival Mattel Inc (MAT.O), the Wall Street Journal reported on Friday, citing people familiar with the matter.

If a deal is approved, however, it would unite better known Hasbro properties, such as My Little Pony, Monopoly, and Nerf with Mattel's Barbie and Hot Wheels toys and could potentially open the door for more partnership opportunities with the entertainment industry.

Most kids don't care about the difference between Hasbro and Mattel - and according to new reports, the two companies might soon become one.

A new combined entity would have pricing power that it could use to negotiate with entertainment studios and over movie and television franchises. The Wall Street Journal first reported Hasbro's latest approach to Mattel. Despite the financial concerns, Mattel's ownership of valuable brands makes the toymaker ripe for takeover by Hasbro.

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Mattel's shares jumped 20 per cent in after hours trading, while Hasbro rose 2.2 per cent. According to The Wall Street Journal, Hasbro is said to be on the prowl (pun) again, after substantiated news just past year, about the two companies being in talks. The terms of a potential deal couldn't be learned, and as always, there may not be one.

The September bankruptcy of Toys "R" Us, the biggest USA toy retailer, highlighted the struggles facing the sector, including online competition and children's shifting preference for electronics over traditional toys.

Hasbro has an $11 billion market value following its increase of 18% in stock price since the start of 2017.

If completed that deal would have given Hasbro a much needed direct line to Hollywood with more television shows and movies tied to toy brands.

Other reports by TheSundaySentinel

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