Hasbro Makes Bid To Buy Mattel

  • Hasbro Makes Bid To Buy Mattel

Hasbro Makes Bid To Buy Mattel

BidaskClub downgraded shares of Mattel from a "hold" rating to a "sell" rating in a report on Saturday, August 5th.

El Segundo-based Mattel Inc. has reportedly received an acquisition offer from rival Hasbro Inc.

A merger of Hasbro and Mattel would make a stronger united company, and give it more power with which to ward off the likes of Amazon, which is why the market is making the (on the surface, at least) unusual decision to reward HAS stock Monday. Capital World Investors now owns 1,559,700 shares of the company's stock valued at $33,580,000 after acquiring an additional 1,090,000 shares during the period. Mattel was not immediately available for comment.

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

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. More than two decades ago, Mattel sought to take over Hasbro, but Hasbro rejected that hostile bid, saying the merger would never pass antitrust hurdles.

For the third quarter of 2017, net sales were down 13% as reported, and down 14% in constant currency. "... That prompted S&P Global Ratings to lower its ratings on Mattel's corporate debt, and led one analyst to say that Mattel might be better off as a takeover target".

Mattel shares rocketed 24% to $18.14 a share in trading after the close of the market Friday when the news broke. It could have long-term consequences for connected toys, too.

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's biggest brands include Disney Princess, My Little Pony, Transformers, Star Wars, Nerf and Monopoly.