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The Toyark › General Toy News › Mattel and Hasbro May Be Talking Merger

Mattel and Hasbro May Be Talking Merger

Posted on February 4, 2016 at 3:06 pm by Joe Moore under General Toy News

Hasbro and Mattel may be looking to shake up to toy world in a massive way! According to a report on Bloomberg Business, sources have said that the top two toy makers have held talks regarding a potential merger! According to the report, Hasbro approached Mattel in late 2015 with the idea of merging their two companies together. Snippets from Bloomberg:

Hasbro Inc. and Mattel Inc. have held talks about merging two of the world’s biggest toymakers, according to people familiar with the matter, in a deal that would bring together the owner of the My Little Pony and Furby brands with Barbie and Hot Wheels.

…

This is not the first time a combination has been talked about. Two decades ago — almost to the day — Mattel withdrew a $5.2 billion offer for Hasbro, citing an “intolerable climate” created by its competitor’s use of the media and politicians to fight the proposed takeover. Back then, Hasbro resisted the deal in what Mattel described as a “scorched earth” campaign to stop it.

…

A merger might not face that many antitrust hurdles because the U.S. toy industry is very fragmented, according to Jaime Katz, an analyst at Morningstar Inc. If combined, the companies would have probably about one quarter of the market in the U.S., she said.

Since then, according to the report, the two companies have held multiple meetings. The sources claim that these talks may ultimately lead nowhere, but nothing has been confirmed one way or the other. Details are extremely scarce at this time. You can read the full article Here.

Discuss on the Toyark Forums› Views: 30403 › Credit: bloomberg.com

› Companies: Hasbro, Mattel

Discussion / Comments (Jump to this Thread on the Forum)

  1. Joe Moore's Avatar Joe Moore says

    02-04-2016, 01:05 PM

    Mattel and Hasbro May Be Talking Merger

  2. dukefett's Avatar dukefett says

    02-04-2016, 01:32 PM

    I hate monopolies.

  3. Ravenxl7's Avatar Ravenxl7 says

    02-04-2016, 01:37 PM

    I hope they don't merge, but at the same time, part of me can't help but wonder if a merger between the two might improve how Mattel handles their action figure lines. Assuming they would keep the DC licensing that is.

  4. Jmacq1 has no avatar! Jmacq1 says

    02-04-2016, 01:46 PM

    Wow. Huge news if it comes to pass (for the toy industry at least).

    Wonder if there's gonna be a BIG announcement at Toy Fair?

    My only hope-beyond-hope would be that the companies be intelligent enough to capitalize on each others' strengths and not get into the kinds of pissing matches that apparently occurred in the old Hasbro/Kenner merger (for instance, classic ARAH G.I. Joe was at least in part scuttled by former Kenner folks who had a grudge against the line).

    Mattel keeps the dolls and cars (except Transformers). Hasbro handles the action figures (ZOMG Marvel and DC both being handled by the same people....). Mattel gets to do the distribution (because while I may not be buying a ton of their product, at least I can find it).

    However, I do find myself curious as to how the merger might work in regards to licensed properties. I know they'd normally keep any contracts that were in place until their pre-determined expiration, but I could see Warner Brothers and Disney being nervous about one (merged) company handling both of their properties (DC and Marvel), and could see it being a big headache for "HasMat" as their licensors squabble and try to mess over each other's toy lines through them.

  5. SymbiSpidey's Avatar SymbiSpidey says

    02-04-2016, 02:01 PM

    I drool at the thought of Marvel Legends quality DC universe figures.

  6. Jay West has no avatar! Jay West says

    02-04-2016, 02:14 PM

    Quote:
    Originally Posted by Jmacq1 View Post
    Wow. Huge news if it comes to pass (for the toy industry at least).

    Wonder if there's gonna be a BIG announcement at Toy Fair?

    My only hope-beyond-hope would be that the companies be intelligent enough to capitalize on each others' strengths and not get into the kinds of pissing matches that apparently occurred in the old Hasbro/Kenner merger (for instance, classic ARAH G.I. Joe was at least in part scuttled by former Kenner folks who had a grudge against the line).

    Mattel keeps the dolls and cars (except Transformers). Hasbro handles the action figures (ZOMG Marvel and DC both being handled by the same people....). Mattel gets to do the distribution (because while I may not be buying a ton of their product, at least I can find it).

    However, I do find myself curious as to how the merger might work in regards to licensed properties. I know they'd normally keep any contracts that were in place until their pre-determined expiration, but I could see Warner Brothers and Disney being nervous about one (merged) company handling both of their properties (DC and Marvel), and could see it being a big headache for "HasMat" as their licensors squabble and try to mess over each other's toy lines through them.
    Doesn't Funko handle both properties?

  7. ultraman zoffy has no avatar! ultraman zoffy says

    02-04-2016, 02:28 PM

    Hoping Digital River isn't part of this conversation...

  8. TheBlueMarvel's Avatar TheBlueMarvel says

    02-04-2016, 02:54 PM



  9. Louise Belcher's Avatar Louise Belcher says

    02-04-2016, 02:56 PM

    This is bad, very bad....They are going to create a monster, an abomination! Hasbro and Mattel the biggest toy companies emerging together, no longer need to compete with each other. Lack of competition means only one thing; they can allow themselves making cheap and ugly toys, yet still make a profits with less effort. Retroblasting prophecy of the end of the playline market is nearer then we thought. Soon, children will only play with their stupid phones.

  10. TheBlueMarvel's Avatar TheBlueMarvel says

    02-04-2016, 03:00 PM

    ^this is also true...

  11. Exodus's Avatar Exodus says

    02-04-2016, 03:07 PM

    Quote:
    Originally Posted by Louise Belcher View Post
    This is bad, very bad....They are going to create a monster, an abomination! Hasbro and Mattel the biggest toy companies emerging toghther, no longer need to compete with each other. Lack of competition means only one thing; they can allow themselves making cheap and ugly toys, yet still make a profits with less effort. Retroblasting prophecy of the end of the playline market is nearer then we thought. Soon, children will only play with their stupid phones.

    Quote:
    Originally Posted by TheBlueMarvel View Post
    ^this is also true...
    Agreed, even though it's not "technically" a true "monopoly" cause of other smaller toy companies out there, it def is a big game changer and that could def be the case with the comment above ^

  12. Pravus Prime's Avatar Pravus Prime says

    02-04-2016, 03:26 PM

    Nope nope nope nope nope!

    This would be disastrous on a number of levels.

  13. Harbinger's Avatar Harbinger says

    02-04-2016, 03:46 PM

    So the 5 poa garbage would be retail and anything worth a shit would be a sub service? Maybe...just maybe if this happened motuc stuff would go mainstream? Yah i dont think so either but that is the only ONLY possible positive i could imagine.

  14. Something2day's Avatar Something2day says

    02-04-2016, 03:48 PM

    I just created an account to say this is really bad for everyone except for Hasbro and Mattel, if they merge their production is going to double, they'll hold the most important toy licenses and will probably restrict sales from other companies, including import companies, like Disney did with Bandai with their Star Wars model kits, which will lead to drop in quality and control of prices. Companies that make figures over the 1/12 scale, 7" beyond, will probably be fine but still with the kinda of power they might have it's a scary thought what they might do with their resources (money and lawyers) if they ever were to merge.

  15. warmachine6's Avatar warmachine6 says

    02-04-2016, 04:01 PM

    yay Marvel legend styled DC characters , ah wait a minute.... maybe ?

  16. deathofthelines's Avatar deathofthelines says

    02-04-2016, 04:09 PM

    Lol legends and DC will all be turned into 5poa titan series figures.

  17. MUfan97's Avatar MUfan97 says

    02-04-2016, 04:15 PM

    If this gives us another decent 3 3/4 inch DC line, I'm all for Brotel.

  18. Exodus's Avatar Exodus says

    02-04-2016, 04:22 PM

    It's actually interesting reading this on the TF side, some are positive and negative. And they did mention that it wouldn't be that bad cause of the other toy lines out there such as bandai and what not...

  19. Louise Belcher's Avatar Louise Belcher says

    02-04-2016, 04:26 PM

    Quote:
    Originally Posted by Exodus View Post
    It's actually interesting reading this on the TF side, some are positive and negative. And they did mention that it wouldn't be that bad cause of the other toy lines out there such as bandai and what not...
    Yep, our adult collector market is big enough, but think about the current children and future generations...they probably won't have any toys, it will turn into a thing from the past.

    P.S. It's about 2 A.M. in Israel and I can't sleep, this unbelievably depperssing . I love playline toys as much as I like adult collector toys and the thought of it all come to an end, it's horrible. This is one of my worst nightmares, I truly hope it won't come true.

  20. JayMoriarty's Avatar JayMoriarty says

    02-04-2016, 04:47 PM

    Well, if it does turn out to be true then I guess we can't get toys any worse than the MCU 2 packs they've been releasing. ...Right?

  21. Harbinger's Avatar Harbinger says

    02-04-2016, 05:02 PM

    Quote:
    Originally Posted by JayMoriarty View Post
    Well, if it does turn out to be true then I guess we can't get toys any worse than the MCU 2 packs they've been releasing. ...Right?
    What always happens when that question is asked? Haha

  22. Skoob's Avatar Skoob says

    02-04-2016, 05:22 PM

    Quote:
    Originally Posted by Jmacq1 View Post
    ..."HasMat."

  23. Snowflakian's Avatar Snowflakian says

    02-04-2016, 05:38 PM

    I'm currently indifferent on it.

    It'd mean interesting prospects for Kre-O and Megabloks. Potentially interesting news for movie lines if Hasbro takes dominance on the action figures and mattel keeps the hotwheels facilities.

    On the regulations side though, not so enthused. Hasbro has a pretty strong track record of staying on top of safety conditions and product testing, Mattel doesn't. So that's a little worrisome.

    The merged rights holdings are interesting though. Disney has hands in both anyway. It'd be interesting to see Amalgam comics figures.

    I think I prefer them separate for now though. I'd be a little concerned as to which lines would feel the merger most. Would we lose Kreons? Would we lose MOTU mega bloks? Who would handle action figure production?

    This is one of those things where I like the potential, but at the same time, what we may lose could equally hurt. Depends what stays, and what fat gets trimmed in the process.

  24. Joe Moore's Avatar Joe Moore says

    02-04-2016, 05:59 PM

    I personally don't expect it to happen, especially now that the word is out. It would make for a hell of an interesting few weeks if it ever somehow came to be.

  25. DarthPapa's Avatar DarthPapa says

    02-04-2016, 06:02 PM

    The thing that worries me the most about this is the big 2 would not have to compete with each other any more. I worry about stagnation and poorer quality control.

  26. There are more replies on the Toyark Forums.

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