Hasbro Has Made an Offer to Buy Mattel
Friday, November 10th, 2017 9:01PM CST
Category: Company NewsPosted by: william-james88 Views: 16,217
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What is interesting is that whatever talks of a merger that we may have had are now evolved into a talk of a takeover which could possibly mean that the end goal would be less about keeping both brands, ala Takara Tomy, but instead absorbing Mattel as a part of Hasbro, like what they eventually did with Kenner before. For those curious, Mattel has a market value of about $5 billion, while Hasbro is worth about $11 billion, so more than double. Hasbro's stock has jumped slightly since the news. Below is a quote from the Wall Street Journal regarding these talks.
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 U.S. toy makers and put Barbie and G.I. Joe under the same roof.
Hasbro’s approach to Mattel was made recently, one of the people said. The terms of any possible deal couldn’t be learned, and the approach may go nowhere.
To read more, you can find the article here. While you need a subscrition to read the full article, this CNBC article is free to read and is based on said Wall Street Journal article.
Let us know what you think can come of this potential takeover and what opportunities for cross branding you see.
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Posted by Microraptor on November 10th, 2017 @ 9:42pm CST
Posted by Ted_Spaghetti on November 10th, 2017 @ 9:46pm CST
Posted by Mechastrike on November 10th, 2017 @ 9:50pm CST
Posted by TulioDude on November 10th, 2017 @ 9:51pm CST
Posted by Flashwave on November 10th, 2017 @ 9:58pm CST
Posted by Grahf_ on November 10th, 2017 @ 10:08pm CST
Posted by Ultimate Weapon1 on November 10th, 2017 @ 10:58pm CST
Posted by Prime Nova on November 11th, 2017 @ 8:03am CST
Posted by Dude Gatsby on November 11th, 2017 @ 9:49am CST
Flashwave wrote:Nah, if Hasbro goes after Mattel, my money on the first crossover is Transformers Hotwheels cars
Lockdown transforming into a Bone Shaker would be fun.
Posted by Aimless Misfire on November 11th, 2017 @ 10:34am CST
Posted by Ultimate Weapon1 on November 11th, 2017 @ 12:44pm CST
Posted by Nemesis Maximo on November 11th, 2017 @ 9:19pm CST
DOOOO WAAAAAAANT
Posted by william-james88 on November 17th, 2017 @ 12:18am CST
Mattel has informed Hasbro its proposal undervalues the company and does not take sufficiently into account the potential for regulators to reject the deal based on antitrust concerns, the sources said.
The sources are, of course, anonymous and the details of Hasbro's offer was never disclosed.
What is interesting is that while the offer was rejected, talks of acquisition have not ceased (they haven't for a decade now) and Mattel would still be up for selling if the offer was right, according to reuters:
Mattel’s rebuttal indicates that Margaret Georgiadis, who took over as the company’s chief executive in February, is seeking to drive a hard bargain in negotiations with Hasbro, even though Mattel’s stock has significantly underperformed that of Hasbro in the last year.
Mattel's stock is expected to lower from the rise it incurred after the news of a potential purchasing agreement.
Posted by Coptur on November 17th, 2017 @ 3:10am CST
Hasbro can sell Monopoly but not be a monopoly
Posted by Blackstreak on November 17th, 2017 @ 4:17am CST
Posted by Decepticon Stryker on November 17th, 2017 @ 5:53am CST
Posted by Plastic Hero on November 17th, 2017 @ 9:21am CST
REJECTED
Posted by Rated X on November 17th, 2017 @ 9:26am CST
Posted by kurthy on November 17th, 2017 @ 10:28am CST
Rated X wrote:Our governments anti-trust laws are flawed. I get that a "monopoly" has been considered a bad thing since the industrial revolution. But on the other hand, when your dealing with that kind of money, the buyers are very limited. If someone whats to sell, that should be their right. Imagine the government told you you couldnt sell your house because the ONLY guy willing to buy it already owns 100 houses. Thats not my concern if I NEED to sell. The government should have to find you a buyer if they are going to reject a sale. Forcing someone to keep a company that they dont want to own anymore seems a bit un-American in my opinion.
I'm going to go with antitrust laws as a good thing. Hasbro having a good 75% of all the toy aisles is not something I want to see. Who else would compete with them, Bandai and Lego? Hasbro would be able to do what they want with TRU and they'd have a really strong bargaining position with Walmart and Target to set prices.
Posted by Evil Eye on November 17th, 2017 @ 12:41pm CST
Posted by Rated X on November 17th, 2017 @ 3:13pm CST
kurthy wrote:Rated X wrote:Our governments anti-trust laws are flawed. I get that a "monopoly" has been considered a bad thing since the industrial revolution. But on the other hand, when your dealing with that kind of money, the buyers are very limited. If someone whats to sell, that should be their right. Imagine the government told you you couldnt sell your house because the ONLY guy willing to buy it already owns 100 houses. Thats not my concern if I NEED to sell. The government should have to find you a buyer if they are going to reject a sale. Forcing someone to keep a company that they dont want to own anymore seems a bit un-American in my opinion.
I'm going to go with antitrust laws as a good thing. Hasbro having a good 75% of all the toy aisles is not something I want to see. Who else would compete with them, Bandai and Lego? Hasbro would be able to do what they want with TRU and they'd have a really strong bargaining position with Walmart and Target to set prices.
I dont see "competition" as being a threat to the toy industry. Its just not the same thing as the auto industry or the fast food industry. Does an 8 year old Star Wars fan really care what company produces Star Wars toys? Only one company is going to own the licence anyways so exactly where is the "competition" ? How many of you Transformers fans walk into a TRU and say "Hasbro makes too much money, so let me buy MOTU instead of Transformers today"? I seriously doubt it. Competition cant exist unless 2 different companies make the same thing. Toy franchises have licenses so that doesnt happen outside of Chinese. KOs.
Posted by Seibertron on November 17th, 2017 @ 4:30pm CST
Posted by Prime Nova on November 17th, 2017 @ 5:03pm CST
Posted by Emerje on November 17th, 2017 @ 8:07pm CST
Seibertron wrote:I don't see how Hasbro and Mattel merging would create a monopoly. When I go to the main Toy Fair at the Javits Center every year, I'm reminded how incredibly small the world of Hasbro and Mattel truly are in the toy industry. I've wanted to see what Hasbro could do with Masters of the Universe and see what Mattel could do with G.I. Joe, it seems like a merger would be the best way to see both of those brands become all that they can. I'd love to see this happen!
Exactly. And when two similar companies buy each other out like this what they're really after is their brands. Hasbro isn't going to buy them just to shut them down and make room for their own stuff on the shelves. To the average person they'd just see the same stuff they're used to seeing on the shelves like Barbie, DC Comics figures, and WWE figures.
kurthy wrote:Hasbro would be able to do what they want with TRU and they'd have a really strong bargaining position with Walmart and Target to set prices.
I don't think their position would change much since they need toy stores to survive. They work well with TRU because they typically sell things at MSRP when there isn't a sale. It's Walmart and Target they struggle with (especially Walmart) because they're big enough that they set their own wholesale prices which is how they're able to sell for $5 under MSRP. But it also cuts into their own potential profits because it narrows the margin after production costs. It also hurts TRU in competition, probably why they don't stock as many Transformers as we'd like them to.
Taking up more shelf space under their name probably wouldn't help them since Walmart can be pretty underhanded when they don't get their way. They can always narrow Hasbro's footprint and find other very eager companies to fill in the space.
Black Hat wrote:Especially given Di$ney's large amount of control over Hasbro these days.
The only control Disney has over Hasbro is with their own licenses and that's true with any license. There was rumor of Disney angling to buy Hasbro shortly after buying Marvel and it didn't go anywhere. I don't think that's something that really interests Disney, I don't believe Hasbro has anything that interests Disney outside of maybe MLP, and if they wanted a toy company of their own they could just make one.
Emerje