A marriage between Rich Uncle Pennybags and Barbie is in the offing, as Hasbro Inc (NASDAQ:HAS) has reportedly made an approach to Mattel Inc (NASDAQ:MAT). Toys and games maker Hasbro, probably best known for milking the Monopoly cow for more than a half a century, is in talks to buy Barbie doll maker Mattel, according to the Wall Street Journal. The report comes just a few weeks after Mattel shocked the market with a profit warning, citing “Toys ‘R’ Us filing for bankruptcy, tighter retailer inventory management and challenges with certain underperforming brands” as reasons for the poor performance in the third quarter. Hasbro has made a takeover approach to Mattel, which means Barbie is now a girl, in a Monopoly Man world. — Marie Connor (@thistallawkgirl) November 10, 2017 For the third quarter of 2017, net sales were down 13% as reported, and down 14% in constant currency. The company made a loss of US$1.75, albeit after a non-cash charge related to a valuation allowance on US deferred tax assets of US$561.9mln. The company binned its dividend in order to increase financial flexibility, strengthen balance sheet and facilitate strategic investments. A merger of the two big players in the US toys & games sector has long been thought to be on the cards, and the recent collapse of toys retailer Toys R Us has increased the pressure on them both. According to Reuters, the two companies have had merger talks several times, including in 1996 and in late 2015. Shares in Mattel, which were languishing close to a 52 week low of US$12.71 at the beginning of the month shot up US$2.76 to US$17.375 on rumours of the bid approach this morning; Hasbro shares hardened 7.6% to US$98.39.
Reported by Proactive Investors 2 hours ago.
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