Mattel and Hasbro are in ongoing discussions about a potential merger; one that could create one of the largest toy companies in the world.
According to The Telegraph Hasbro approached Mattel towards the end of last year. 2015 was a poor time for Mattel, with sales declining in stark contrast to those of its Scandinavian rival, Lego.
Together, Mattel and Hasbro would control some of the world’s most popular toy brands, including Barbie and My Little Pony, as well as rights to ranges such as Star Wars: The Force Awakens and Disney’s Frozen.
The talks were originally reported by Bloomberg, though as of yet there are little concrete details. Hasbro has an estimated $9.2bn market value, whilst Mattel’s is $10.7bn.
The two brands tried to discuss a merger previously in 1996, though then Chairman of Mattel John Amerman cut off discussions due to harmful comments made to the media.
“You elected to take drastic steps, both politically and through the media, to greatly increase the difficulty of achieving a merger in a timely manner,” Amerman wrote to Hasbro Chairman Alan Hassenfeld. “Unfortunately, your ‘scorched earth’ campaign has created an intolerable climate.”