Report: Mattel rejects takeover offer from Hasbro
Michael Lauzon
Mattel Inc.
Mattel Inc. is the maker of Barbie and Ken dolls. The toymaker recently expanded its range of body styles for both dolls.
Toy icon Mattel Inc. has rejected a takeover offer by rival Hasbro Inc., according to a report by Reuters.
Reuters reported on Nov. 15 that unnamed sources said Hasbro's latest takeover bid was not successful. Five days earlier The Wall Street Journal reported that Hasbro had recently made a play for Mattel.
The latest bid followed at least two rumored bids made in the past three years. The previous alleged bid and its failure was reported by Bloomberg in early 2016.
El Segundo, Calif.-based Mattel now is a more vulnerable company than it was during earlier takeover bids. Its share price has fallen 47 percent this year while Hasbro's shares have risen by 18 percent. Mattel's market capitalization on Nov. 10 was about $6.3 billion, nearly half what it was a year earlier and nearly half of Hasbro's share value.
Mattel's global sales in the third quarter were down 13 percent compared with a year ago, partly due to the bankruptcy of mass retailer Toys R Us. The firm reported a loss of $1.75 per share and suspended its fourth quarter dividend.
A combination of the two toy majors would generate combined annual sales exceeding $10 billion, about twice as big as the next biggest rival Lego A/S. Even without a merger, the two companies are the largest toy makers in the world.