Hasbro reportedly offered to buy Mattel

Hasbro reportedly offered to buy Mattel

Hasbro reportedly offered to buy Mattel

Mattel's toys include Barbie and Hot Wheels.

Mattel's shares jumped 20 percent in after hours trading.

Mattel's stance toward Hasbro at this time 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.

USA toymaker Hasbro Inc has made a takeover approach for rival Mattel Inc, the Wall Street Journal reported on Friday, citing people familiar with the matter. However, the terms of any possible deal were not revealed. However, the company has been struggling recently with losses and poor sales.

If the deal were to go through, it would bring the two largest toy companies in the U.S. and their vast catalog of brands together. Hasbro, which makes Disney Princess Dolls and Nerf guns, rose about 3.3 per cent. The company reported a decline in sales after Toys R' Us filed for bankruptcy in September.

CEO Margo Georgiadis, who took the reins in January, has warned the business would miss its revenue forecast for the full year. But Mattel's shares are down by almost half this year alone - an appealing discount for Hasbro. Mattel stock fell on that day to its lowest since 2009. 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.

That deal would have given Hasbro a direct pipeline into Hollywood, with more movies and TV shows tied to its toy brands.

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