Markets

Hasbro Makes Bid To Buy Mattel

Hasbro Makes Bid To Buy Mattel

Representatives for Hasbro and Mattel declined comment on the report, saying they don't respond to speculation.

Mattel, the maker of Barbie and Hot Wheels, has been struggling to boost sales.

Mattel shares rallied 21% to $17.75 after hours on heavy volume following a report from The Wall Street Journal (https://www.wsj.com/articles/hasbro-makes-takeover-approach-to-mattel-1510351281) that Hasbro made an offer for Mattel, according to sources close to the matter.

For much of this year, there has been talk across the toy industry about a possible tie-up between the two companies. Hasbro has My Little Pony and Monopoly.

If the deal were to go through, it would bring the two largest toy companies in the U.S. and their vast catalog of brands together. Hasbro shares were up 3.3%. Last month the company suspended its dividend and warned it would miss forecasts for revenue this year.

The bankruptcy filing in September by Toy "R" Us, the largest toy retailer in the USA, highlighted struggles that the sector is facing including children's preferences shifting from traditional toys to electronics and online competition increasing.

"We believe its brands and manufacturing footprint could be worth more than $10 billion in their current state", analyst Gerrick Johnson of BMO Capital Markets said in a note to clients.

Hasbro has a total market value of $11.4 billion, and its stock is up almost 18% this year.