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Hasbro bids to acquire Mattel: Reuters
Posted on Monday, 13 November 2017 13:53
US toymaker Hasbro has submitted an approach to pick up Mattel, its Californian peer known for its Fisher-Price and Barbie ranges, according to Reuters.

Citing a person with knowledge of the matter, who did not wish to be identified as the matter is confidential, the news provider cautioned that there is no guarantee of a deal being reached and noted that Mattel’s view of the offer is not yet known.

None of the companies involved have commented on the report, which stated that the pair were previously in talks over an amalgamation in 1996 and 2015.

Reuters cited professor Erik Gordon of the University of Michigan’s Ross School of Business as saying that both parties would benefit from a combination, but he cautioned that Mattel shareholders may not be in favour of a valuation based on its current share price, which is somewhat depressed.

According to the news provider, the enlarged business would be in a better position to negotiate television and movie deals with studios; their current brands include My Little Pony, Hot Wheels and GI Joe.

Hasbro has already announced an asset sale of its own this year; in August it agreed to offload Chinese subsidiary Guangdong Alpha Hasbro Toys Development to Alpha Group for an undisclosed sum.

The company’s most recent acquisition closed in July 2016, when it picked up Dublin-headquartered animated video producer Boulder Media.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 82 deals targeting doll, toy and game manufacturers announced worldwide since the beginning of 2017.

The largest of these was worth USD 1.59 billion and involved BlackRock Japan and associates buying a 5.2 per cent stake in video games giant Nintendo, which closed in March.

This was followed by a transaction in which DHX Media picked up an 80.0 per cent stake in comics publisher Peanuts Worldwide and 100.0 per cent of Iconix Brand Group’s Strawberry Shortcake doll manufacturing brand for a combined USD 345.00 million.

© Zephus Ltd