Hasbro Offers To Buy Mattel

by Frankie Norman November 13, 2017, 0:24
Hasbro Offers To Buy Mattel

Mattel, the maker of Barbie and Hot Wheels, has been struggling to boost sales.

Mattel stock has taken a beating recently with market valuation at about $5 billion, compared with more than $11 billion for Hasbro.

According to a report on the WSJ, Hasbro had recently approached Mattel with the deal.

Hasbro Inc. has approached rival Mattel Inc. with a takeover offer, said a source close to the situation on Friday, the most recent attempt to bring together the two largest toymakers in the U.S. However, the terms of any possible deal were not revealed. Shares have fallen almost 50% over the year after the company suspended its shareholder dividend and outlined cost-saving measures.

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's stock has fallen 52 percent over the past year, and its market value is now about $5 billion. Hasbro Inc. shares rose $2.55, or 2.8 percent, to $94.

Mattel in late October reported a 14% drop in its third-quarter sales, excluding the effect of currency fluctuations, and suspended its quarterly dividend. Mattel's stock fell to its lowest since 2009 that day.

Mattel has not been the only target of Hasbro, which is trying to diversify its revenue stream.

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