Shares of Mattel closed up more than 20% on Monday after reports indicated that rival toy maker Hasbro may be considering taking over the company.
The Barbie maker and the maker of Play Doh and My Little Pony could create the biggest toy company by joining together.
It’s been a rocky time for both companies as toy retailer Toys R Us chose to do bankruptcy.
Ironically it was in 1996 that Mattel tried to take over Hasbro.
Last month Hasbro released its third quarter financial report that topped estimates, though it did lower its outlook for the next three months. The company’s CEO Brian Golder had said the Toys R Us bankruptcy “will not be an issue for us in 2018.”
He also said, “We paused shipment for a short period as we gain clarity. Our finance and Toys ‘R’ Us commercial teams worked on an agreement we signed a few days ago… We just need to determine what Toys ‘R’ Us can receive in
the next few months.”
It was last month that Mattel also released its third quarter financial report that was less than impressive. EPS of 9 cents heavily dragged behind the 58 cents that Wall Street had waited for.
Disclaimer: We have no position in Mattel, Inc. (NASDAQ: MAT) nor Hasbro, Inc. (NASDAQ: HAS) and have not been compensated for this article.