Hasbro Reportedly Trying to Acquire Mattel

Hasbro Reportedly Trying to Acquire Mattel

According to the New York Times, Hasbro made the takeover offer in recent months and while details about the offer are unknown as is whether or not Hasbro and Mattel have been in any further talks about the offer, a deal would combine the two largest US toymakers in more than two decades.

Hasbro's approach to Mattel was made recently, one of the people said.

Shares of Mattel, which makes Barbie dolls and Hot Wheels, dropped 47 percent this year, while stocks for Hasbro rose nearly 18 percent.

A new combined entity would have pricing power that it could use to negotiate with entertainment studios and over movie and television franchises.

Mattel's stance toward Hasbro at this time is not clear, and it remains far from certain that a deal will materialise, the source said, asking not to be identified because the matter is confidential.

Mattel's shares jumped 20 per cent in after hours trading, while Hasbro rose 2.2 per cent. Hasbro shares were up 3.3%.

The Wall Street Journal was the first to report Hasbro's latest approach to Mattel.

Both toymakers have been struggling with waning demand and the recent bankruptcy of Toys'R'Us, a major outlet for toy sales. The toymaker's stock has also taken a hit, falling 52 percent over the past year while Hasbro's shares have increased 8 percent.

Mattel has cited the bankruptcy as one reason it has experienced weaker sales. Last month the company suspended its dividend and warned it would miss forecasts for revenue this year.

In 2014, Hasbro held merger discussions with DreamWorks Animation SKG Inc, the studio behind "Shrek", but DreamWorks was subsequently bought by Comcast Corp (CMCSA.O).

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