Merger Rumors Send Mattel, Inc. (MAT), Hasbro, Inc. (HAS) Stocks Higher

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Mattel, Inc. (NASDAQ:MAT) stock and Hasbro, Inc. (NASDAQ:HAS) stock are higher following rumors about a possible merger of the two toy companies.

Mattel, Inc., MAT, Hasbro, Inc., HASThe recent rumors of a merger between the two companies come after both have released their earnings reports for the fourth quarter of 2016. Hasbro, Inc. reported strong fourth quarter earnings on Monday with girl toys sales increasing 52%. Mattel, Inc. didn’t fare as well and released poor results for the quarter last month.

The recent results from the companies’ fourth quarter earnings report has sparked some talk that the two may be interested in a merger. The two first considered a merger back in the mid-1990s, and then allegedly again just last year. However, nothing ever came from these talks.

Leonard Sherman, Columbia business school professor, believes that Mattel, Inc. and Hasbro, Inc. may be ready for a merger. He notes that HAS may be better at managing MAT than its own team is. Sherman also says that a possible merger would be in line with the increase in merger and acquisition activity in other markets, reports TheStreet.com.

One thing that could make a merger between Mattel, Inc. and Hasbro, Inc. possible is the lack of restrictions. It was thought that regulators would present a problem during the rumored talks last year. Namely, that the two companies wouldn’t get approval for the deal. However, it is possible regulators wouldn’t pose as much of a problem if merger talks start up again.

MAT stock was up 1% and HAS stock was up 2% as of Noon Tuesday.


Article printed from InvestorPlace Media, https://investorplace.com/2017/02/mattel-inc-mat-hasbro-inc-has/.

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