Does good news help with prospective mergers?

With the holiday season beginning in earnest for retailers, toymakers are likely very popular among consumers. Within the world of corporate mergers and acquisitions, Mattel and Hasbro are rumored to be hot commodities as they discuss the possibility of joining forces.

According to a recent report, Hasbro has made an offer to purchase Mattel. Like many mergers, Hasbro wants to ensure its survival in the marketplace, even though ostensibly wants to buy its rival as the toy industry is experiencing a decline due in part to the growing popularity of console games, tablets and other handheld electronics.

Additionally, Toys-R-Us’ recent bankruptcy has been particularly harmful for Mattel, because it has not had a popular venue to sell it toys. Other big box retailers such as Target and Wal-Mart simply don’t have the same shelf space. 

While the deal has not transpired yet, the rumors regarding a possible union have been helpful for both companies. Analysts believe that a combined company would have a competitive advantage in the marketplace. It could expand its brand to new areas by establishing crossover audiences. Imagine , the My Little Pony franchise combined with Barbie dolls or Hot Wheels? The television and movie rights exposure could be a boon for both companies.

The story exemplifies the importance of good publicity in the midst of a potential merger or acquisition. A supportive transaction will benefit shareholders and stakeholders alike. If you have questions or need guidance on purchasing a company or being acquired, an experienced business law attorney can advise you.

The preceding is not legal advice. 

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