Hasbro Inc. has made a takeover offer for rival Mattel Inc., according to people familiar with the matter, a potential combination that would unite the two biggest USA toy makers and put Barbie and G.I. Joe under the same roof. However, the terms of any possible deal were not revealed.
Representatives for Hasbro and Mattel declined comment on the report, saying they don't respond to speculation.
Mattel's market value is $5 billion after the stock plunged 47 percent, so far this year.
Hasbro, which is based in Pawtucket, Rhode Island, manufactures toy brands including G.I. Joe, Nerf, Transformers and My Little Pony. Regulatory issues could also be a factor in any future combination of the two companies, which are the industry's dominant toymakers. Hasbro Inc. shares rose $2.55, or 2.8 percent, to $94.
The bankruptcy filing in September by Toy "R" Us, the largest toy retailer in the USA, highlighted struggles that the sector is facing including children's preferences shifting from traditional toys to electronics and online competition increasing.
In Friday's regular session, shares of Mattel closed up 5% at $14.62 for a market cap of $5.03 billion, and shares of Hasbro finished up 3.1% at $91.45 for a cap of $11.39 billion.
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