Hasbro may have made bid for rival Mattel

Hasbro Inc. reportedly made an offer to buy beleaguered rival Mattel Inc., the latest chapter in the long-running speculation that the two major U.S. toy makers would join forces.

Hasbro approached El Segundo-based Mattel recently with a takeover offer but terms of the proposal were not available, the Wall Street Journal reported Friday, citing unidentified sources familiar with the matter.

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

Hasbro, based in Pawtucket, R.I., makes toy products such as Transformers, G.I. Joe figures, My Little Pony, Nerf and Play-Doh, as well as games such as Monopoly, Scrabble and Twister. It also has rights to valuable entertainment franchises such as “Star Wars.”

Mattel’s brands include the iconic Barbie doll, Hot Wheels and Matchbox cars, Fisher-Price toys and American Girl dolls. Mattel has struggled with slumping sales despite hiring former Google executive Margo Georgiadis as its CEO early this year.

Mattel in late October reported a 14% drop in its third-quarter sales, excluding the effect of currency fluctuations, and suspended its quarterly dividend. It blamed some of the decline on the recent bankruptcy filing of retailer Toys R Us Inc.

That prompted S&P Global Ratings to lower its ratings on Mattel’s corporate debt, and led one analyst to say that Mattel might be better off as a takeover target.

Mattel’s market value is $5 billion after the stock plunged 47% so far this year. The stock jumped 5% Friday to close at $14.62 a share.

Hasbro has a total market value of $11.4 billion, and its stock is up nearly 18% this year. Hasbro closed at $91.45 a share, up 3%, on Friday.