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Published: Mon, November 13, 2017
Economy | By Melissa Porter

Hasbro Reportedly Offers to Buy Mattel

Hasbro Reportedly Offers to Buy Mattel

Hasbro has made a bid to take over toy aisle rival Mattel in a deal that would bring together the leading makers of entertainment-themed consumer products, from Disney princesses to DC superheroes. Mattel's stock has fallen 52 percent over the previous year.

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

For much of this year, there has been talk across the toy industry about a possible tie-up between the two companies. Shares of Hasbro rose 3.6% to $94.70 after hours.

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

"Both companies would benefit from a merger, but Mattel stockholders might oppose a deal that values the company on its depressed stock price", said Erik Gordon, a professor at the University of Michigan's Ross School of Business.

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.

Mattel in late October reported a 14% drop in its third-quarter sales, excluding the effect of currency fluctuations, and suspended its quarterly dividend.

That deal would have given Hasbro a direct pipeline into Hollywood, with more movies and TV shows tied to its toy brands.

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