Bloomberg Business is reporting that the top two toy makers have held talks regarding a potential merger. According to their report, Hasbro approached Mattel in late 2015 with the idea of merging their two toy companies.
Originally posted at Bloomberg Business:
Mattel Inc. and Hasbro Inc. have held talks about merging two of the world’s biggest toy companies, according to people familiar with the matter, in a deal that would bring together the manufacturer of Hot Wheels with the maker of My Little Pony.
Hasbro approached Mattel about a potential transaction late last year, and the companies have held on-and-off-again talks about a deal, the people said, asking not to be identified as the situation isn’t public. Details of how a transaction might be structured couldn’t immediately be learned. The talks may not lead to a deal, the people said.
Representatives for Hasbro and Mattel declined to comment.
Mattel shares rose 1.7 percent to $32.29 at 4:26 p.m. in New York, valuing the company at about $11 billion and extending a streak that has seen the stock gain 19 percent this year. Hasbro rose 1.3 percent to $75.96 after climbing as high as $78.45, valuing the company at about $9.5 billion.
Mattel Chief Executive Officer Chris Sinclair is leading a charge to revive the El Segundo, California-based company’s Barbie business, after losing market share in recent years to Europe’s biggest toymaker, Lego A/S, as well as Hasbro’s reinvigorated My Little Pony brand. Shares surged the most in almost seven years Tuesday after holiday results topped analysts’ estimates, even as gross sales fell.
You can read the full article about this potential business merger HERE.