Published: Mon, November 13, 2017
Markets | By Erika Turner

Hasbro makes takeover offer for Mattel

Hasbro makes takeover offer for Mattel

A new report claims that Hasbro Inc. has made a takeover offer for its rival, Mattel Inc., although details surrounding the offer are now unknown. Hasbro owns Nerf, Transformers, and My Little Pony, while Mattel makes Barbie and American Girl dolls, along with Fisher-Price and Hot Wheels toys.

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

The Wall Street Journal, citing people familiar with the matter that it did not identify, said Hasbro approached Mattel recently about a deal.

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Shares of Mattel Inc. rose $3.09, or 21 percent, to $17.71 in extended trading. Last month the company suspended its dividend and warned it would miss forecasts for revenue this year. The company reported a decline in sales after Toys R' Us filed for bankruptcy in September.

Hasbro had approached Mattel at least twice before, first in 1996 and then again sometime in late 2015, according to media reports. Conversely, Hasbro shares have increased 8 percent bringing its market value to an impressive $11.4 billion. 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 stock fell on that day to its lowest since 2009.

A similar rumor that Hasbro and Mattel were holding merger talks appeared in media reports in early 2016, and such speculation repeatedly has surfaced and then faded in the two decades since Hasbro resisted a formal $5.2-billion purchase bid from Mattel.

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