- Hasbro has made an offer for Mattel, according to the Wall Street Journal.
- The takeover would combine the world’s two largest toy makers.
- A combined company would control some of the world’s most popular toy brands, like Barbie, Hot Wheels, Playskool, and Tonka.
Hasbro has made an offer on the beleaguered Mattel after a courtship lasting years. Mattel’s shares are down by half for the year, making an appealing discount for Hasbro.
Mattel makes some of the most popular toy products, including Barbie, Fisher Price, and Hot Wheels, has struggled this year due to weak sales and lagging demand. Shares have fallen nearly 50% over the year after the company suspended its shareholder dividend and outlined cost-saving measures.
Merger talks between the two companies have been going on for years, though nothing has materialised out of them.
Hasbro has grown to be one of the world’s largest toy makers, in part because of a licensing partnership with Disney which enables it to sell themed “Frozen” and “Star Wars” toys.
Mattel market value stands at about $US5 billion this year, while Hasbro claims more than double that at $US11 billion. Mattel’s stock jumped 5% on the news, while Hasbro saw a 3% bump in after-hours trading.