Last Updated on May 10, 2021 by Danielle
Hasbro’s CEO is open to the idea of a merger but says company’s first priority is its own business.
When asked about the possible merger between Hasbro and Mattel, Brian Goldner, the CEO of Hasbro, said that his company is open to the idea of a merger, but said Hasbro is committed to executing its own strategic vision.
Bloomberg broke the news story late last week that Hasbro and Mattel were having talks about a possible merger. If the deal went through, it would bring together the 2 largest U.S. toy companies. Apparently, Hasbro first approached Mattel late last year and the 2 companies have been having on and off talks about the deal. VTech surprised everyone in the industry by acquiring LeapFrog.
Brian Goldner’s comments come after Hasbro released its fourth quarter earnings report. The report showed Hasbro achieved strong sales from boys toys but weaker sales for girls toys. Sales of girls toys fell by 17%.
While the strong dollar contributed to success, Hasbro’s toy sales were driven by the new Star Wars movie that opened in December. Last year, Star Wars Toys were the hottest toys for Christmas. Stars Wars Toys accounted for $500 million last year and Star Wars merchandise was exceptionally popular overseas.
Hasbro expects the Star Wars brand to be strong even this year. Industry insiders are predicting that Star Wars toys are going to be some of the hottest toys for 2021 during Christmas thanks to the release of the Star Wars Spin Off film, Rogue One, in December.
Marvel and Jurassic World related toys also helped propel sales in the boys category. These proved to be some of the most popular toys for boys, helping to elevate Hasbro’s boys category to a 35 percent sales gain in the 4th quarter.
Hasbro saw its shares climb 1.3 percent after the positive news. The momentum has continued with the stock gaining 10% in the early part of 2016.
Rising 13%, revenue even surpassed analysts’ predictions of $1.37 billion with revenue of $1.47 billion. The company’s CFO, Deborah Thomas assured that the company is committed to returning excess cash to shareholders as Hasbro raised its quarterly dividend by 11% from 46 cents to 51 cents.