Hasbro reportedly makes a takeover bid for struggling rival Mattel

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US toymaker Hasbro Inc has made a takeover approach for rival Mattel Inc, the Wall Street Journal reported on Friday, citing people familiar with the matter.

Representatives for Hasbro and Mattel declined comment on the report, saying they don't respond to speculation.

Hasbro, based in Pawtucket, R.I., makes toys such as Transformers, G.I. Joe figures, My Little Pony, Nerf and Play-Doh, and games including Monopoly, Scrabble and Twister. It also has rights to valuable entertainment franchises such as "Star Wars".

CEO Margo Georgiadis, who took the reins in January, has warned the business would miss its revenue forecast for the full year.

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The report comes close on the heels of the bankruptcy of Toys'R'Us - a major outlet for toy sales - that piled more pressure on an industry already struggling with online competition and lackluster demand for traditional toys.

That prompted S&P Global Ratings to lower its ratings on Mattel's corporate debt.

Hasbro's strategy of using entertainment assets to fuel toy sales has paid off richly - the company's market cap is $11.4 billion, more than twice that of El Segundo, CA-based Mattel. Shares of Mattel have dropped by 47% during the year, valuing the business at just over $4.8 billion and making it a target for a takeover. Mattel's stock has fallen 52 percent over the past year, and its market value is now about $5 billion. Hasbro shares were up 3.3%.