The toy aisle could become a lot more tight-knit if an acquisition goes through.
According to unnamed sources speaking to The Wall Street Journal, Hasbro has approached Mattel about a possible buyout. For those unfamiliar with the companies, Hasbro is the company behind toy lines such as G.I. Joe and Star Wars while Mattel is best-known for Barbie. Currently, Hasbro sits at a market value of around $11.4B while Mattel is well behind at $4.8B.
This is a volatile time for the toy industry with Toys R’ Us having recently filed for bankruptcy. Add into all of this that traditional toys such as action figures are having issues finding a foothold in an increasingly connected world. Kids have more distractions than ever before, so playing with an action figure seems a bit old school to them. Merging these two companies together would bring a lot of properties together, and with Hasbro’s increased presence in Hollywood, the two companies together would bring a lot to the table.
Both companies are declining to comment at this time, and that is to be expected. There have also been talks between the companies twice before in 1996 and 2015 that ended up in nothing happening, but even in the two short years since the last talks, a lot has changed. The pressures are increasing rapidly, and the companies would definitely be stronger together.
As someone who has followed the toy industry for decades, this merger has always felt inevitable, it has merely been a question of when.
Source: The Wall Street Journal .