Hasbro makes takeover offer for Mattel

Jon Howard
November 13, 2017

Hasbro has made a bid to take over toy aisle rival Mattel in a deal that would bring together the leading makers of entertainment-themed consumer products, from Disney princesses to DC superheroes.

Shares of Mattel Inc. rose $3.09, or 21 percent, to $17.71 in extended trading.

Merger talks between Hasbro and Mattel are back on again, according to a new report from The Wall Street Journal.

The terms of any possible deal "couldn't be learned", the WSJ said, and it is not clear if the approach will move forward. Regulatory issues could also be a factor in any future combination of the two companies, which are the industry's dominant toymakers. Shares have fallen almost 50% over the year after the company suspended its shareholder dividend and outlined cost-saving measures. The company reported a decline in sales after Toys R' Us filed for bankruptcy in September.

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Mattel in late October reported a 14 percent drop in its third-quarter sales, excluding the effect of currency fluctuations, and suspended its quarterly dividend.

Hasbro has an $11 billion market value following its increase of 18% in stock price since the start of 2017. Mattel stock fell on that day to its lowest since 2009.

Mattel's market value is $5 billion after the stock plunged 47% so far this year.

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

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