Hasbro is bidding to takeover rival toy manufacturer Mattel, according to a report in the Wall Street Journal.
Shares in Mattel rose 13.5% in Friday’s postmarket trading, while Hasbro’s share price grew 3.1% during the day’s trading.
If the takeover bid is successful, it would create a company with a $16 billion market value. Hasbro is currently valued at $11 billion, Mattel $5 billion.
Mattel investors may demand a price-per-share that is above market value in order to minimise losses on a stock that has decreased 47% this year, Hasbro has increased 18% during the same period.
The companies are the two largest toy makers in the USA and supply many of the industry’s most famous brands. Hasbro’s popular ranges include Transformers, My Little Pony and Monopoly. Mattel’s stable includes Barbie, Hot Wheels and Fisher-Price.
There have been previous unsuccessful attempts to merge the two companies, in 2015 Hasbro made a takeover bid and in 1996 Mattel was the one making an offer to buy its rival. The1996 bid was the subject of the book Toy Wars.