Mattel and Hasbro discuss possible merger – El Financiero

Hasbro Inc. and Mattel Inc. have held talks on a possible merger , revealed people familiar with the matter, in a deal that would reunite the owner of My little Pony and brands Furby Barbie and Hot Wheels.

Hasbro approached Mattel to pose a possible operation late last year and companies have talked about a deal, the sources said, asking not to be identified.

the details of how you might structure a transaction could not be disclosed. The talks may not lead to an agreement, the sources said.

Representatives of Hasbro and Mattel declined to comment.

The CEO Mattel, Chris Sinclair, trying to stimulate the Barbie -as has revitalized Hasbro My Little Pony after losing market share in recent years against Lego.

Hasbro would report quarterly revenue close to 4.4 billion dollars from 4.3 billion in 2014, according to the average estimate of 12 analysts. The company based in Pawtucket, and licensee of toys Star Wars: The Awakening of force, last October said that sales had a good start

. revenues from Mattel are prepared to take another hit this year, after he snatched Hasbro license the Disney Princesses. Last week, the company unveiled Barbie dolls with a wider range of options, including several versions of heights, with more curves and color, in an attempt to boost the appeal of the brand.

This is not the first time there has been talk of a merger. almost two decades ago on the same day, Mattel withdrew an offer of 5.2 billion for Hasbro due to an “intolerable climate” created by the use of its competitor media and politicians to fight the proposed acquisition. At the time, Hasbro resisted the agreement as Mattel described as a campaign of “scorched earth” to stop it.

If the deal is successful this time, the challenge would be to unite the strength of Mattel in the category of girls and domain Hasbro on toy aisle of children, while they would be the strongest competitor Lego of Denmark, which has been growing faster than any of its US rivals.

melting could not face many obstacles to competition because the toy industry in the United States is fragmented, according to Jaime Katz, an analyst at Morningstar Inc. If combined, the companies probably would have about a quarter of the US market, he said.

However, an obstacle to consider would be the fusion of cultures and the headquarters of both companies on opposite coasts, Katz said.