The firms have since been engaged in on-and-off talks about a deal according to Bloomberg, though as yet there were no further details as to how the transaction might be structured.
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Hasbro approached its rival at the end of a year ago, it is claimed, with a view to creating a single company with control over global brands such as Barbie, Hot Wheels and My Little Pony. Shares in Mattel closed 1.7 per cent higher while Hasbro spiked as high as 4.6 per cent, before ending 1.2 per cent up.
Industry giants Mattel and Hasbro aren’t taking Lego’s resurgence as a top toy maker lying down. A merging of the two behemoths of fun would create the world’s biggest toy company.
This is not the first time these two companies have had discussions over a potential merger.
The toy maker now holds the toy license for Star Wars: The Force Awakens that has helped the firm to a “strong start” for the fiscal year. Revenue at Mattel is set to take another hit this year as the licensing rights to Disney’s lucrative Frozen and Princess brands shift to Hasbro.
Mattel reported a surprise rise in holiday quarter sales, its first increase in over two years, boosted in part by recovering sales of its 56-year old Barbie brand.
Hasbro is scheduled to report its holiday-quarter results on Monday. The news sent shares in both companies up yesterday. Mattel was not immediately available for comment. Back then, Hasbro resisted the deal in what Mattel described as a “scorched earth” campaign to stop it. Despite all talks of monopolization, analysts opine that a combined company could only have one-fourth share of the retail toy market, which may not flash the red signal for regulators.
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Other experts said the antitrust review would probably hinge on how broadly officials define the market.
