Hasbro Reportedly Offers to Buy Mattel

A T Rex Monopoly piece

A T Rex Monopoly piece

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

Hasbro's Mattel bid came to light thanks to The Wall Street Journal's anonymous sources, but the details remain scarce.

The stance by Mattel toward Hasbro related to this approach is not known and it remains far from being certain a deal will eventually materialize, said the source, who asked to remain anonymous since the matter was confidential.

It is not the first time both companies have discussed a collaboration: both in 1996 and 2016, they briefly discussed a merger.

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Mattel has pointed to that bankruptcy as a reason for weak sales.

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Shares in Mattel have lost almost half their value this year and it has a market value of $5 billion, less than half that of Hasbro.

Speculation about the deal sent Mattel shares up 20 percent Monday, days after its stock dropped in the wake of a $600 million third-quarter net loss. Mattel's shares have slumped 47 percent this year, valuing the company at $4.8 billion and making it more vulnerable as a takeover target.

"If a deal did go ahead, it would reflect the tech industry's increasingly firm grip on kids' free time. Hasbro would have a larger stable of tech-driven toys, and could fold Mattel's know-how into its own projects", observes Jon Fingas for Engadget.

The news comes a week after it was announced Hasbro has teamed with Paramount Pictures to produce and distribute content based on Hasbro brands, as well as original stories.

Hasbro, based in Pawtucket, R.I., makes toys such as Transformers, G.I. Joe figures, My Little Pony, Nerf and Play-Doh, and games including Monopoly, Scrabble and Twister.

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