Hasbro makes takeover offer for Mattel

Hasbro makes takeover offer for Mattel

Hasbro makes takeover offer for Mattel

Representatives for Hasbro and Mattel declined comment on the report, saying they don't respond to speculation.

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.

Mattel Inc. (MAT) shares soared more than 20% in the extended session Friday following a report that Hasbro Inc.

The Wall Street Journal reported the talks, citing sources familiar with the matter.

The terms of any possible deal "couldn't be learned", the WSJ said, and it is not clear if the approach will move forward. Shares have fallen almost 50% over the year after the company suspended its shareholder dividend and outlined cost-saving measures.

If the deal were to go through, it would bring the two largest toy companies in the U.S. and their vast catalog of brands together. Conversely, Hasbro shares have increased 8 percent bringing its market value to an impressive $11.4 billion.

Mattel in late October reported a 14% drop in its third-quarter sales, excluding the effect of currency fluctuations, and suspended its quarterly dividend.

Mattel's market value is $5 billion after the stock plunged 47% so far this year.

Hasbro has a total market value of $11.4 billion, and its stock is up almost 18% this year.

Hasbro is attempting to diversify revenue streams, and has sought to acquire movie studio and entertainment business Lions Gate Entertainment, but the talks were ended without any deal coming to fruition.

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