Hasbro Makes Bid For Rival Toymaker Mattel

  • Hasbro Makes Bid For Rival Toymaker Mattel

Hasbro Makes Bid For Rival Toymaker Mattel

Representatives of Hasbro and Mattel declined comment on the report.

El Segundo, California-based Mattel is the maker of iconic Barbie dolls, American Girl dolls, Fisher-Price and Hot Wheels toys.

Mattel Inc. (MAT) shares soared more than 20% in the extended session Friday following a report that Hasbro Inc.

Mattel's stance toward Hasbro at this time is not clear, and it remains far from certain that a deal will materialise, the source said, asking not to be identified because the matter is confidential.

A new report claims that Hasbro Inc. has made a takeover offer for its rival, Mattel Inc., although details surrounding the offer are now unknown. However, the company has been struggling recently with losses and poor sales.

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. Regulatory issues could also be a factor in any future combination of the two companies, which are the industry's dominant toymakers.

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

Mattel market value stands at about $5 billion this year, while Hasbro claims more than double that at $11 billion. Hasbro closed at $91.45 a share, up 3%, on Friday.