Media buzzing over possible game changing merger between two mega toy brands.
Mattel and Hasbro have held talks about a potential merger of the two companies, it has emerged this morning.
According to Bloomberg Business, Hasbro approached Mattel about a potential deal late in 2015, with the companies holding ‘on and off again’ talks.
The tip off came from ‘people familiar with the matter’, although details of how a transaction might be structured couldn’t be learned. It was also stressed that the talks may not lead to a deal.
Shares in both Mattel and Hasbro rose after the news broke in the US last night. Mattel’s rose 1.7% to $32.29 – valuing the company at around $11 billion, according to Bloomberg – while Hasbro’s rose 1.3% to $75.96, valuing it at around $9.5 billion.
Both Hasbro and Mattel hold a raft of key licences – most recently, Hasbro has enjoyed success with Star Wars: The Force Awakens toys, while Mattel was at the forefront of the Frozen phenomenon.
However, the licensing rights to Frozen and Disney Princess brands will switch to Hasbro this year.
Hasbro has also successfully transferred the Transformers brand to the big screen.
This isn’t the first time a deal has been talked about. Bloomberg reported that two decades ago, Mattel withdrew a $5.2 billion offer for Hasbro, citing an ‘intolerable climate’ created by its competitor’s use of the media and politicians to fight the proposed takeover.