{"id":51922,"date":"2017-11-11T07:24:57","date_gmt":"2017-11-11T07:24:57","guid":{"rendered":"https:\/\/www.biphoo.com\/bipnews\/?p=51922"},"modified":"2017-11-11T07:24:57","modified_gmt":"2017-11-11T07:24:57","slug":"u-s-toymaker-hasbro-makes-new-approach-to-buy-matte","status":"publish","type":"post","link":"https:\/\/www.biphoo.com\/bipnews\/business\/u-s-toymaker-hasbro-makes-new-approach-to-buy-matte.html","title":{"rendered":"U.S. toymaker Hasbro makes new approach to buy Matte"},"content":{"rendered":"

U.S. toymaker Hasbro makes new approach to buy Matte<\/span><\/strong><\/span><\/h2>\n

U.S. toymaker Hasbro makes new approach to buy Matte: Hasbro Inc (HAS.O) has made an approach to acquire rival Mattel Inc (MAT.O), a source familiar with the matter said on Friday, the latest attempt to combine the two biggest U.S. toymakers in more than two decades.<\/span><\/p>\n

A deal would create a toy powerhouse, uniting Hasbro\u2019s My Little Pony, Monopoly and Nerf brands with Mattel\u2019s Barbie dolls and Hot Wheels toys. A combined company would have more pricing power to negotiate with entertainment studios over TV and movie franchises.<\/span><\/p>\n

Mattel\u2019s stance toward Hasbro in this overture is not clear, and it remains far from certain that a deal will materialize, the source said, asking not to be identified because the matter is confidential.<\/span><\/p>\n

Hasbro and Mattel declined to comment. The Wall Street Journal first reported Hasbro\u2019s latest approach to Mattel.<\/span><\/p>\n

Shares of Mattel jumped about 24 percent in after-hours trading. Hasbro shares rose about 3.3 percent.<\/span><\/p>\n

Hasbro has a market value of about $11 billion after a near 18 percent increase in its stock price so far in 2017. Mattel\u2019s shares have slumped 47 percent this year, valuing the company at $4.8 billion and making it more vulnerable as a takeover target.<\/span><\/p>\n

The September bankruptcy of Toys \u201cR\u201d Us, the biggest U.S. toy retailer, highlighted the struggles facing the sector, including online competition and children\u2019s shifting preference for electronics over traditional toys.<\/span><\/p>\n

Mattel has pointed to that bankruptcy as a reason for weak sales.<\/span><\/p>\n

Two weeks ago, Mattel suspended its dividend and Chief Executive Margo Georgiadis, who took the job in January, warned the company would miss its full-year revenue forecast. Mattel\u2019s stock fell to its lowest level since 2009 that day.<\/span><\/p>\n

\u201cBoth companies would benefit from a merger, but Mattel stockholders might oppose a deal that values the company on its depressed stock price,\u201d said Erik Gordon, a professor at the University of Michigan\u2019s Ross School of Business.<\/span><\/p>\n

Hasbro and Mattel have had talks several times over the years, including in 1996 and again sometime in late 2015.<\/span><\/p>\n

Hasbro, which is trying to diversify its revenue stream, also sought to buy U.S. movie studio and entertainment company Lions Gate Entertainment Corp (LGFa.N) this year, but those talks ended without a deal, Reuters reported in August.<\/span><\/p>\n

That deal would have given Hasbro a direct pipeline into Hollywood, with more movies and TV shows tied to its toy brands.<\/span><\/p>\n

In 2014, Hasbro held merger discussions with DreamWorks Animation SKG Inc, the studio behind \u201cShrek,\u201d but DreamWorks was subsequently bought by Comcast Corp (CMCSA.O).<\/span><\/p>\n

Source:http:\/\/www.reuters.com\/article\/us-mattel-m-a-hasbro\/u-s-toymaker-hasbro-makes-new-approach-to-buy-mattel-source-idUSKBN1DA2WV<\/span><\/p>\n

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