Rival toymakers Hasbro and Mattel have had talks about merging, Bloomberg reports.
Hasbro, which makes Furby and My Little Pony, approached Mattel, which makes Barbie and Hot Wheels, about potentially combining last year, according to the report.
Hasbro will report earnings next week that are expected to be strong, while Mattel is expected to report weak full-year results.
Mattel has worked with Disney since 1955, but lost the licensing rights to its Princess brands — including the lucrative Frozen brand — to Hasbro last year.
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