Over two decades ago, Mattel tried to takeover Hasbro with Hasbro rejecting the offer.
Mattel's brands include the Barbie doll, Hot Wheels and Matchbox cars, Fisher-Price toys and American Girl dolls. Mattel's stock surged on the news, while Hasbro saw a 3% bump in after-hours trading.
The approach was made recently, the WSJ said, citing one person.
Toymaker Hasbro Inc has made a takeover approach for rival Mattel Inc, the Wall Street Journal reported on Friday. Both toymakers have struggled in recent years to maintain relevancy in an increasingly digital world, combating consumer trends by injecting more and more technology into their products, and launching their own virtual apps as well.
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.
If the deal were to go through, it would bring the two largest toy companies in the United States and their vast catalog of brands together. Mattel's stock has fallen 52 percent over the past year, and its market value is now about $5 billion.
Mattel in late October reported a 14% drop in its third-quarter sales, excluding the effect of currency fluctuations, and suspended its quarterly dividend. Conversely, Hasbro shares have increased 8 percent bringing its market value to an impressive $11.4 billion.