Mattel, the maker of Barbie and Hot Wheels, has been struggling to boost sales.
Mattel Inc. (MAT) shares soared more than 20% in the extended session Friday following a report that Hasbro Inc.
According to a report on the WSJ, Hasbro had recently approached Mattel with the deal.
US toymaker Hasbro Inc has made a takeover approach for rival Mattel Inc, the Wall Street Journal reported on Friday, citing people familiar with the matter. The terms of a potential deal could not be learned, the newspaper said.
For much of this year, there has been talk across the toy industry about a possible tie-up between the two companies.
If the deal were to go through, it would bring the two largest toy companies in the United States and their vast catalog of brands together.
CEO Margo Georgiadis, who took the reins in January, has warned the business would miss its revenue forecast for the full year.
Hasbro, Inc. shares closed at $91.45 on Friday, up $2.76 (+3.11%). Hasbro has a value of about $11-billion after a near 18 per cent increase in its stock price in 2017. Mattel's stock fell to its lowest since 2009 that day.
Mattel's market value is $5 billion after the stock plunged 47% so far this year.
If completed that deal would have given Hasbro a much needed direct line to Hollywood with more television shows and movies tied to toy brands.