Hasbro Offers To Buy Mattel

A T Rex Monopoly piece

Mattel's brands include the iconic Barbie doll, Hot Wheels and Matchbox cars, Fisher-Price toys and American Girl dolls.

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

The approach was made recently, the WSJ said, citing one person.

Merger talks between Hasbro and Mattel are back on again, according to a new report from The Wall Street Journal. The terms of a potential deal could not be learned, the newspaper said. Shares have fallen almost 50% over the year after the company suspended its shareholder dividend and outlined cost-saving measures.

Hasbro, which is based in Pawtucket, Rhode Island, manufactures toy brands including G.I. Joe, Nerf, Transformers and My Little Pony.

If the deal were to go through, it would bring the two largest toy companies in the USA and their vast catalog of brands together. Last month the company suspended its dividend and warned it would miss forecasts for revenue this year. Mattel's stock has fallen 52 percent over the past year, and its market value is now about $5 billion. It blamed some of the decline on the recent bankruptcy filing of retailer Toys R Us Inc. Hasbro Inc. shares rose $2.55, or 2.8 percent, to $94. Shares of Mattel have dropped by 47% during the year, valuing the business at just over $4.8 billion and making it a target for a takeover.

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