AGL 38.69 Increased By ▲ 0.47 (1.23%)
AIRLINK 129.00 Increased By ▲ 0.03 (0.02%)
BOP 8.70 Increased By ▲ 0.85 (10.83%)
CNERGY 4.76 Increased By ▲ 0.10 (2.15%)
DCL 8.63 Increased By ▲ 0.31 (3.73%)
DFML 38.43 Decreased By ▼ -0.51 (-1.31%)
DGKC 84.80 Increased By ▲ 2.86 (3.49%)
FCCL 35.05 Increased By ▲ 1.63 (4.88%)
FFBL 75.80 Increased By ▲ 0.09 (0.12%)
FFL 12.82 No Change ▼ 0.00 (0%)
HUBC 110.69 Increased By ▲ 0.33 (0.3%)
HUMNL 14.40 Increased By ▲ 0.39 (2.78%)
KEL 5.44 Increased By ▲ 0.29 (5.63%)
KOSM 7.71 Increased By ▲ 0.04 (0.52%)
MLCF 41.10 Increased By ▲ 1.30 (3.27%)
NBP 71.50 Decreased By ▼ -0.82 (-1.13%)
OGDC 191.65 Increased By ▲ 3.36 (1.78%)
PAEL 26.30 Increased By ▲ 0.67 (2.61%)
PIBTL 7.50 Increased By ▲ 0.13 (1.76%)
PPL 157.25 Increased By ▲ 4.58 (3%)
PRL 25.99 Increased By ▲ 0.60 (2.36%)
PTC 18.85 Increased By ▲ 1.15 (6.5%)
SEARL 83.00 Increased By ▲ 0.58 (0.7%)
TELE 7.81 Increased By ▲ 0.22 (2.9%)
TOMCL 33.00 Increased By ▲ 0.43 (1.32%)
TPLP 8.39 Decreased By ▼ -0.03 (-0.36%)
TREET 16.72 Decreased By ▼ -0.06 (-0.36%)
TRG 56.50 Increased By ▲ 0.46 (0.82%)
UNITY 28.90 Increased By ▲ 0.12 (0.42%)
WTL 1.36 Increased By ▲ 0.01 (0.74%)
BR100 10,769 Increased By 110.8 (1.04%)
BR30 31,925 Increased By 593.2 (1.89%)
KSE100 100,217 Increased By 948.2 (0.96%)
KSE30 31,262 Increased By 229.7 (0.74%)

Hasbro Inc has made an approach to acquire rival Mattel Inc, a source familiar with the matter said on Friday, the latest attempt to combine the two biggest US toymakers in more than two decades. A deal would create a toy powerhouse, uniting Hasbro's My Little Pony, Monopoly and Nerf brands with Mattel's Barbie dolls and Hot Wheels toys. A combined company would have more pricing power to negotiate with entertainment studios over TV and movie franchises.
Mattel's 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. Hasbro and Mattel declined to comment. The Wall Street Journal first reported Hasbro's latest approach to Mattel. Shares of Mattel jumped about 24 percent in after-hours trading. Hasbro shares rose about 3.3 percent.
Hasbro has a market value of about $11 billion after a near 18 percent increase in its stock price so far in 2017. Mattel's shares have slumped 47 percent this year, valuing the company at $4.8 billion and making it more vulnerable as a takeover target. The September bankruptcy of Toys "R" Us, the biggest US toy retailer, highlighted the struggles facing the sector, including online competition and children's shifting preference for electronics over traditional toys.
Mattel has pointed to that bankruptcy as a reason for weak sales. 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's stock fell to its lowest level since 2009 that day. "Both companies would benefit from a merger, but Mattel stockholders might oppose a deal that values the company on its depressed stock price," said Erik Gordon, a professor at the University of Michigan's Ross School of Business.
Hasbro and Mattel have had talks several times over the years, including in 1996 and again sometime in late 2015. Hasbro, which is trying to diversify its revenue stream, also sought to buy US movie studio and entertainment company Lions Gate Entertainment Corp this year, but those talks ended without a deal, Reuters reported in August.

Comments

Comments are closed.