Two of the world’s biggest toy-makers may still be coming together, following recent reports that Hasbro has approached Mattel about a potential takeover offer. Mattel rebuffed the initial offer, saying it undervalued the company’s value and indicating that it intends to drive a hard bargain in negotiations.
Global toy company Mattel, which owns brands including Fisher-Price and Hot Wheels, has grappled with falling sales over the last year. Hasbro – the home of brands such as Play Doh and My Little Pony – approached Mattel in early November, according to reports in The Wall Street Journal.
Sources have since said that Mattel told Hasbro that it believed the proposal undervalues the company and does not take the potential for regulators to reject the deal based on antitrust concerns sufficiently into account.
Mattel’s shares jumped by 20% following reports that Hasbro was considering a takeover, while Hasbro shares rose by more than 2% in the same period. Mattel has a market value of $5b, while Hasbro is worth about $11b.
It is not yet clear whether the latest round of talks will continue. Reports have said that Hasbro and Mattel have entered into negotiations a number of times, most notably in 1996, when Mattel made Hasbro a takeover offer, and again in late 2015.
