Hasbro reportedly offered to buy Mattel

Hasbro reportedly offered to buy Mattel

USA toymaker Hasbro Inc has made a takeover approach for rival Mattel Inc, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Mattel's brands include the Barbie doll, Hot Wheels and Matchbox cars, Fisher-Price toys and American Girl dolls.

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

Hasbro made the takeover approach in recent months, these people said, as Mattel has struggled to revive some of its faded brands.

Toy companies, including Hasbro and Mattel, are finding it hard to sell toys to today's kids, many of whom would rather play with a tablet, according to commentators.

Shares in Mattel reacted positively to the news as they shot up by 24% during Friday afterhours trading.




Hasbro has a total market value of $11.4 billion, and its stock is up almost 18% this year. The company reported a decline in sales after Toys R' Us filed for bankruptcy in September. Conversely, Hasbro shares have increased 8 percent bringing its market value to an impressive $11.4 billion.

Mattel has cited the bankruptcy as one reason it has experienced weaker sales.

Talks that the two may join forces has been long rumored, as Mattel's stock has fallen a significant 52 percent over the past year, leaving its market value at $5 billion. Mattel stock fell on that day to its lowest since 2009.

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

Mattel has not been the only target of Hasbro, which is trying to diversify its revenue stream.

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