Hasbro toying with Mattel mega-merger
TOY giant Hasbro has made an approach to acquire rival Mattel in a multi-billion pound bid that would create a global powerhouse.
The potential deal would unite Hasbro’s My Little Pony, Monopoly and Nerf brands with Mattel’s Barbie dolls and Hot Wheels toys.
TV and movie tie-ins are an essential part of the toy business, and the combined company would have extra firepower in negotiations for lucrative merchandising rights.
Sources familiar with the matter told Reuters that Mattel’s position is unclear and it is far from certain a deal will materialise. Hasbro and Mattel declined to comment. Mattel shares jumped 20pc when US markets opened yesterday, with Hasbro shares rising about 6pc.
Hasbro has a market value of £9.2bn. Meanwhile, Mattel is worth about £4.6bn after a share slump of 47pc this year – making it a ripe takeover target.
Mattel previously blamed the bankruptcy of Toys ‘R’ Us for its weak sales. It suspended its dividend two weeks ago and warned it was set to miss forecasts.