Published: Mon, November 13, 2017
Finance | By Kristine Clayton

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

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

As the Wall Street Journal reports, long-time rivals Hasbro, Inc. The terms of a potential deal could not be learned, the newspaper added, cautioning there could be no deal.

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

Hasbro's approach was made recently, the WSJ said, citing one person.

Mattel's shares were up 24.74 per cent in after-hours trading to $18.25, while Hasbro's were up more than three per cent to around $94.

Two weeks back, Mattel suspended its dividend and Chief Executive Margo Georgiadis, who took the job in January, warned the company would miss its full-year revenue forecast. But Mattel's shares are down by almost half this year alone - an appealing discount for Hasbro. 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 has also blamed the bankruptcy of toy retailer Toys "R" Us for its weak sales.

Both Mattel and Hasbro declined to make a comment.

Hasbro, Inc. shares closed at $91.45 on Friday, up $2.76 (+3.11%). Mattel stock fell on that day to its lowest since 2009.

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

If completed that deal would have given Hasbro a much needed direct line to Hollywood with more television shows and movies tied to toy brands.

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