Hasbro Reportedly Offers to Buy Mattel

Hasbro Reportedly Offers to Buy Mattel

Hasbro Reportedly Offers to Buy Mattel

This is not the first time the two biggest US toymakers have held talks about coming together.

Shares in Barbie toymaker Mattel have jumped nearly 20% on reports rival toy giant Hasbro is considering a takeover.

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 biggest brands include Barbie, Hot Wheels, Toy Story, MatchBox and Mega Blocks.

But the company is contending with lackluster sales. Hasbro's stock is up 18 percent this year, and the company has a market value of $11 billion - more than twice as much as Mattel. Mattel did not immediately respond to a request for comment.

Multiple outlets reported on Friday that Rhode Island-based Hasbro made an initial approach to acquire its California-based rival Mattel, which has been on a downward spiral over the last few years, forcing the toy giant to suspend its quarterly dividend from the fourth quarter last month.

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

Speculation about the deal sent Mattel shares up 20 percent Monday, days after its stock dropped in the wake of a $600 million third-quarter net loss.

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. "The two companies have already collaborated on movies based on the toys G.I. Joe and Transformers", write the NYT's Corkery and de la Merced. Hasbro Inc. shares rose $2.55, or 2.8 percent, to $94.

Two decades ago, Hasbro resisted a $5.2 billion purchase bid from Mattel.

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