Hasbro makes takeover offer for Mattel

Hasbro makes takeover offer for Mattel

Troy Powers
November 13, 2017

Shares of Mattel soared in after-hours trading Friday after a report that rival Hasbro made a takeover offer for Mattel.

The two companies were not immediately available for comment.

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

For much of this year, there has been talk across the toy industry about a possible tie-up between the two companies. But Mattel's shares are down by almost half this year alone - an appealing discount for Hasbro. It blamed some of the decline on the recent bankruptcy filing of retailer Toys R Us Inc.

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. Mattel stock fell on that day to its lowest since 2009.

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Hasbro Inc. has made a takeover offer for rival Mattel Inc., according to people familiar with the matter, a potential combination that would unite the two biggest USA toy makers and put Barbie and G.I. Joe under the same roof. But a deal did not materialize on either occasion.

Hasbro ended talks to acquire USA movie studio and entertainment company Lions Gate Entertainment Corp, Reuters reported in August.

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.

In 2014, Hasbro held merger discussions with DreamWorks Animation SKG Inc, the studio behind "Shrek", but DreamWorks was subsequently bought by Comcast Corp.