US toymaker Hasbro makes new approach to buy Mattel: source

NEW YORK: Hasbro Inc has made an approach to acquire rival Mattel Inc, a source familiar with the matter said on Friday, the latest attempt to combine the two biggest US toymakers in more than two decades.
A deal would create a toy powerhouse, uniting Hasbro’s My Little Pony, Monopoly and Nerf brands with Mattel’s Barbie dolls and Hot Wheels toys. A combined company would have more pricing power to negotiate with entertainment studios over TV and movie franchises.
Mattel’s stance towards Hasbro in this overture 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.
Hasbro and Mattel declined to comment. The Wall Street Journal first reported Hasbro’s latest approach to Mattel.
Shares of Mattel jumped about 24 per cent in after-hours trading. Hasbro shares rose about 3.3 per cent.
Hasbro has a market value of about $11 billion after a near 18 per cent increase in its stock price so far in 2017. Mattel’s shares have slumped 47 per cent this year, valuing the company at $4.8 billion and making it more vulnerable as a takeover target.
— Reuters