Are Hasbro And Mattel Considering A Merger?

Hasbro and Mattel may be looking to shake up to toy world in a massive way! According to a report on Bloomberg Business, sources have said that the top two toy makers have held talks regarding a potential merger. According to the report, Hasbro approached Mattel in late 2015 with the idea of merging their two companies together. Snippets from Bloomberg:

Hasbro Inc. and Mattel Inc. have held talks about merging two of the world’s biggest toymakers, according to people familiar with the matter, in a deal that would bring together the owner of the My Little Pony and Furby brands with Barbie and Hot Wheels.

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This is not the first time a combination has been talked about. Two decades ago — almost to the day — Mattel withdrew a $5.2 billion offer for Hasbro, citing an “intolerable climate” created by its competitor’s use of the media and politicians to fight the proposed takeover. Back then, Hasbro resisted the deal in what Mattel described as a “scorched earth” campaign to stop it.

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A merger might not face that many antitrust hurdles because the U.S. toy industry is very fragmented, according to Jaime Katz, an analyst at Morningstar Inc. If combined, the companies would have probably about one quarter of the market in the U.S., she said.

Since then, according to the report, the two companies have held multiple meetings. The sources claim that these talks may ultimately lead nowhere, but nothing has been confirmed one way or the other. Details are extremely scarce at this time. You can read the full article Here.