Hasbro and Mattel Talk Merger to Take On Lego

Mattel and Hasbro, the world’s largest toy makers, recently held talks about a merger – the third time in the last 20 years that the two have talked about a tie-up.

John Amerman, the then chief executive at Mattel had communicated the anger through a letter to the then chairman at Hasbro, Alan Hassenfeld. The Rhode Island-based company holds the toy licence for “Star Wars: The Force Awakens” – a hit in theatres over the holiday season – and said in October that sales were off to a “strong start”.

This is not the first time these two companies have had discussions over a potential merger.

Details of the potential transaction were not readily available, Bloomberg said, with its sources saying the deal might not happen at all.

That is partly because Hasbro has taken over the contract to produce toys based on the Disney movie Frozen, and toys sold under the Princess brand. Both companies declined comment.

Neither firm has commented on today’s reports.

If Hasbro and Mattel combine, it could lead to toy crossovers once seen only in children’s toyboxes, like a GI Joe/Barbie event where the Dream House becomes a nightmare of war.

For example, Hasbro makes Marvel action figures while Mattel makes DC Comics action figures.

Mattel, which specialises in toys aimed at girls, has come under pressure in Europe from resurgent Lego sales.

According to The Telegraph Hasbro approached Mattel towards the end of a year ago.

Hasbro is scheduled to report full-year earnings on February 8, with revenue forecast to increase to about $US4.4 billion from $US4.3 billion in 2014, according to the average estimate of 12 analysts, compiled by Bloomberg. It’s still very much in the early stages though – a merger may yet face a tricky competition review, depending on how officials define the market.