A new report claims that Hasbro Inc. has made a takeover offer for its rival, Mattel Inc., although details surrounding the offer are currently unknown.
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The news first broke courtesy of the New York Times, with the outlet revealing that the approach from Hasbro was made in recent months. The details surrounding the offer are unknown, and it's unclear whether the two parties have had any further discussions since the initial pitch was made by Hasbro. This would not be the first time the two toy giants have entered talks regarding a potential takeover. Over two decades ago, Mattel tried to takeover Hasbro with Hasbro rejecting the offer.
Talks that the two may join forces has been long rumored, as Mattel's stock has fallen a significant 52 percent over the past year, leaving its market value at $5 billion. Conversely, Hasbro shares have increased 8 percent bringing its market value to an impressive $11.4 billion. Despite its financial woes, brands like Fisher Price and Hot Wheels, which are still seen as valuable, are said to make Mattel "ripe for a takeover" by Hasbro.
The news comes a week after it was announced Hasbro has teamed with Paramount Pictures to produce and distribute content based on Hasbro brands, as well as original stories. Hasbro’s Allspark Pictures and Allspark Animation will work alongside Paramount Pictures as they develop and produce new projects, expanding their relationship beyond the Transformers franchise and the G.I. Joe films.