Economy

USA toymaker Hasbro makes new approach to buy Mattel

USA toymaker Hasbro makes new approach to buy Mattel

Hasbro Inc. has approached rival Mattel Inc. with a takeover offer, said a source close to the situation on Friday, the most recent attempt to bring together the two largest toymakers in the U.S. Despite its financial woes, brands like Fisher Price and Hot Wheels, which are still seen as valuable, are said to make Mattel "ripe for a takeover" by Hasbro.

Hasbro has made a bid to take over toy aisle rival Mattel in a deal that would bring together the leading makers of entertainment-themed consumer products, from Disney princesses to DC superheroes.

Hasbro, Inc. shares closed at $91.45 on Friday, up $2.76 (+3.11%).

The September bankruptcy of Toys "R" Us, the biggest USA toy retailer, highlighted the struggles facing the sector, including online competition and children's shifting preference for electronics over traditional toys. The terms of a potential deal couldn't be learned, and as always, there may not be one. According to The Wall Street Journal, Hasbro is said to be on the prowl (pun) again, after substantiated news just previous year, about the two companies being in talks.

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Hasbro's stock rose 18 per cent this year, and the company has a market value of $11 billion - more than twice that of Mattel.

Hasbro and Mattel have had talks several times over the years, including in 1996 and again sometime in late 2015. Meanwhile Hasbro's stock is up almost 15% in the past year. The company reported a decline in sales after Toys R' Us filed for bankruptcy in September.

In 2014, Hasbro held merger discussions with DreamWorks Animation SKG Inc, the studio behind "Shrek", but DreamWorks was subsequently bought by Comcast Corp (CMCSA.O).