Hasbro Makes Bid For Rival Toymaker Mattel

Mattel Barbie store

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

El Segundo, California-based Mattel is the maker of iconic Barbie dolls, American Girl dolls, Fisher-Price and Hot Wheels toys. Mattel's stock has fallen 52 percent over the past year.

USA toymaker Hasbro Inc has made a takeover approach for rival Mattel Inc, the Wall Street Journal reported on Friday, citing people familiar with the matter.

The Wall Street Journal, citing people familiar with the matter that it did not identify, said Hasbro approached Mattel recently about a deal. Shares have fallen almost 50% over the year after the company suspended its shareholder dividend and outlined cost-saving measures. Hasbro has My Little Pony and Monopoly.

A combination of the two companies would bring an impressive portfolio of brands under one roof.

Hasbro, Inc. shares closed at $91.45 on Friday, up $2.76 (+3.11%). Mattel has also blamed the bankruptcy of toy retailer Toys "R" Us for its weak sales. Mattel's stock has fallen 52 percent over the past year, and its market value is now about $5 billion.

Two weeks back, Mattel suspended its dividend and Chief Executive Margo Georgiadis, who took the job in January, warned the company would miss its full-year revenue forecast.

Mattel market value stands at about $5 billion this year, while Hasbro claims more than double that at $11 billion.

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