Mattel stock soars on report of Hasbro takeover offer
Shares of Mattel soared in after-hours trading Friday after a report that rival Hasbro has made a takeover offer for Mattel. Such a deal could bring together well-known brands like Monopoly, Nerf, Barbie and Hot Wheels.
The Wall Street Journal, citing people familiar with the matter that it did not identify, said Hasbro approached Mattel recently about a deal. Hasbro said it does not comment on "rumors or speculation." Mattel did not immediately respond to a request for comment.
Toy companies, including Hasbro and Mattel, have had trouble selling their toys to today's kids, many of whom would rather play with a tablet.
Revenue at El Segundo, California-based Mattel has fallen every year since 2013, and its stock has lost nearly half its value since the beginning of the year.
Hasbro, based in Pawtucket, Rhode Island, has fared better after it took over the rights from Mattel for Disney's "Princess" and "Frozen" dolls in late 2014. Hasbro's stock is up 18 percent this year, and the company has a market value of $11 billion — more than twice as much as Mattel.
Both companies took a hit when Toys R Us filed for bankruptcy protection in September. Hasbro and Mattel said that they temporarily reduced shipments to the toy store operator ahead of the bankruptcy filing, but said they were working with the retailer to get their toys on its shelves during the holiday season.
Shares of Mattel Inc. rose $3.38, or 23 percent, to $18 in extended trading. Hasbro Inc. shares rose $2.55, or 2.8 percent, to $94.