Hasbro sees $ in Mattel marriage

GI Joe is putting the moves on Barbie — and Wall Street is hoping it’s not just a passing fancy.

Shares of Barbie’s owner, Mattel, surged 21 percent Monday, to $17.64, on a report that GI Joe maker Hasbro wants to buy the company.

Investors showered love on the potential deal, first reported by The Wall Street Journal on Friday, as struggling Mattel desperately needs a boost.

Shares of Mattel have tumbled 36 percent year to date, dragged down by slackening demand for Barbie dolls. Meanwhile, Hasbro’s shares have climbed 24 percent, lifted partly by its grip on the “Star Wars” toy franchise.

A combined entity would account for more than a 50 percent share of such key toy categories as dolls, model vehicles and action figures, Jefferies analyst Stephanie Wis- sink said in a research note. Together they would command 34 percent of the total US toy market, according to Wissink.

As such, risk “does exist” the deal could run into antitrust concerns with the Federal Trade Commission, Wissink said.

“They would control all of the major toy brands with the exception of The Lego Group,” said toy consultant Richard Gottlieb.

Last year, Hasbro wrangled the licensing rights to Disney’s “Star Wars” franchise from Mattel, as well as the rights to the lucrative Disney Princess dolls.

The Disney factor also could play out on a second front: licensors like the Mouse House could feel a negative impact, experts said.

“If there is no Mattel to bid against, the dollars go down,” said Gottlieb. “It wouldn’t surprise me to see Disney make a run at Mattel. If Disney were to own Mattel, it could keep the licensing in-house.”