Hasbro and Mattel are reportedly closer to creating a giant toy company

Nov 13, 2017, 00:25
Hasbro and Mattel are reportedly closer to creating a giant toy company

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.

Bloomberg reported in early 2016 that the two companies have held on-again, off-again talks.

Mattel's shares jumped 20 per cent in after hours trading, while Hasbro rose 2.2 per cent. Hasbro closed at $91.45 a share, up 3 percent, Friday.

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

The report comes close on the heels of the bankruptcy of Toys'R'Us - a major outlet for toy sales - that piled more pressure on an industry already struggling with online competition and lackluster demand for traditional toys. Shares of Mattel have dropped by 47% during the year, valuing the business at just over $4.8 billion and making it a target for a takeover. Mattel's stock fell to its lowest since 2009 that day. (MAT), a merger deal that could combine the two biggest toy makers in the U.S.

Both Mattel and Hasbro declined to make a comment. But a deal did not materialize on either occasion.

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.

Hasbro ended talks to acquire US movie studio and entertainment company Lions Gate Entertainment Corp, Reuters reported in August.