Mattel shares skyrocket more than 20% on report of Hasbro takeover interest

Mattel shares skyrocket more than 20% on report of Hasbro takeover interest

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.

According to a report on the WSJ, Hasbro had recently approached Mattel with the deal.

Hasbro approached El Segundo, Calif. -based Mattel recently with a takeover offer but terms of the proposal were not available, The Wall Street Journal reported Friday, citing unidentified sources.

If the deal were to go through, it would bring the two largest toy companies in the USA and their vast catalog of brands together. Shares of Hasbro rose 3.6% to $94.70 after hours. But Mattel's shares are down by almost half this year alone - an appealing discount for Hasbro.

Mattel in late October reported a 14 percent drop in its third-quarter sales, excluding the effect of currency fluctuations, and suspended its quarterly dividend.

The report comes close on the heels of the bankruptcy of Toys'R'Us - a major outlet for toy sales - that piled more pressure on an industry already struggling with online competition and lackluster demand for traditional toys.

Mattel's market value is $5 billion after the stock plunged 47% so far this year. Mattel stock fell on that day to its lowest since 2009.

Mattel has not been the only target of Hasbro, which is trying to diversify its revenue stream.

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

Related:

  • Saudi Arabia Awaits UN Probe Into Houthi Missiles

    Saudi Arabia Awaits UN Probe Into Houthi Missiles

    Iran swiftly dismissed French President Emmanuel Macron's call for talks relating to Tehran's ballistic missiles program.
    Islamic State on the verge of total defeat

    Islamic State on the verge of total defeat

    Across the border on Saturday, Iraqi forces launched an assault to capture the last pocket of IS territory in their country. Abu Kamal's fall signaled the end of IS as a terrorist group, Syrian Army commanders said.
    Nvidia shares rise on Q3 Financial Results

    Nvidia shares rise on Q3 Financial Results

    Nvidia Corporation focuses on personal computer graphics, graphics processing unit (GPU) and also on artificial intelligence (AI). Oppenheimer Holdings, Inc. reaffirmed a hold rating on shares of NVIDIA Corporation in a research note on Sunday, November 5th.
  • Salman Khan's Race 3 goes on floor

    Salman Khan's Race 3 goes on floor

    And Salman, who is reuniting with Jacqueline after three years, shared the flawless mahurat shot with his fans on social media. As speculations suggest, the third installment of the movie Race will bring Salman Khan and Anil Kapoor together onscreen.

    Real Madrid's Gareth Bale suffers another injury setback

    That's according to Spanish news outlet Don Balon who say Florentino Perez has had Bale's declining stats analysed. Bale has struggled to find form having been plagued by injuries.
    JC Penney; Equifax — CORPORATE REPORT

    JC Penney; Equifax — CORPORATE REPORT

    However, it was a boon for JCP stock by beating out Wall Street's losses per share estimate of 43 cents for the quarter. The acquisition was disclosed in a legal filing with the SEC, which can be accessed through the SEC website .
  • Mueller probing alleged Flynn plan to deliver cleric to Turkey

    Mueller probing alleged Flynn plan to deliver cleric to Turkey

    But by mid-December Trump had named Flynn national security adviser and he was playing a central role in the transition. According to "people familiar with the investigation", it was at this encounter that the $15m payment was discussed.
    Morocco and Tunisia qualify for World Cup 2018

    Morocco and Tunisia qualify for World Cup 2018

    Morocco and Tunisia will join Nigeria, Egypt and Senegal as the African sides in Russian Federation next summer. The Atlas Lions are returning to the World Cup for the first time in 20 years after they last made it in 1998.
    Conor McGregor storms ring, shoves ref in Dublin MMA match

    Conor McGregor storms ring, shoves ref in Dublin MMA match

    Goddard, who reportedly has a history with McGregor, apparently angered McGregor with his attempts to clear up the ring. The UFC star was involved in a insane altercation in the cage with referee Marc Goddard at the event in the 3Arena.
  • Close isn't good enough as Browns remain winless

    Close isn't good enough as Browns remain winless

    The Browns made mistakes, including at the end of the first half when they botched the most basic elements in clock management. Detroit needed just 10 rushes to surpass the average of 84.3 yards per game on the ground allowed by the Browns.
    Arsene Wenger told Jack Wilshere playing out-of-position at Arsenal

    Arsene Wenger told Jack Wilshere playing out-of-position at Arsenal

    But we are not playing with a 10 tomorrow. "I don't think Jack is a ten", Merson told Sky Sports News . But at the same time, [Jesse] Lingard has started less games than Wilshere.
    US, South Korea joint military drills begin in Western Pacific

    US, South Korea joint military drills begin in Western Pacific

    Chinese President Xi Jinping (R) meets with South Korean President Moon Jae-in in Da Nang, Vietnam, Nov. 11, 2017. President Donald Trump's Asia visit, which was largely focused on about the North Korean nuclear threat.

Comments

Other news