Hasbro and Mattel are reportedly closer to creating a giant toy company (MAT, HAS)

• Hasbro has made an offer for Mattel, according to the Wall Street Journal.
• The takeover would combine the world’s two largest toy makers.
• They own some of the world’s most popular toy brands, like Barbie, Hot Wheels, Playskool, and Tonka.
• Bloomberg reported in early 2016 that the two companies have held on-again, off-again talks.

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Merger talks between Hasbro and Mattel are back on again, according to a new report from The Wall Street Journal.

Hasbro has made an offer on the beleaguered Mattel after a courtship lasting years.

Bloomberg reported in early 2016 that the two companies have held on-again, off-again talks. But Mattel’s shares are down by nearly half this year alone — an appealing discount for Hasbro.

Mattel makes some of the most popular toy products, including Barbie, Fisher Price, and Hot Wheels, has struggled this year due to weak sales and lagging demand. Shares have fallen nearly 50% over the year after the company suspended its shareholder dividend and outlined cost-saving measures.

Hasbro has grown to be one of the world’s largest toy makers, in part because of a licensing partnership with Disney which enables it to sell themed “Frozen” and “Star Wars” toys.

Mattel market value stands at about $5 billion this year, while Hasbro claims more than double that at $11 billion. Mattel’s stock surged on the news, while Hasbro saw a 3% bump in after-hours trading.

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