Mattel (MAT) Stock: Rocketing On Takeover Chatter

Mattel, Inc. (NASDAQ: MAT) is having an overwhelmingly strong day in the market today as reports surface that the company may soon be taken over by a massive rival. Of course, this is leading to excitement among investors and sending the stock toward the top. Today, we’ll talk about the takeover chatter, how the stock is reacting to the news, and what we’ll be watching for with regard to MAT ahead.





MAT Heads Up On Takeover Chatter

As mentioned above, Mattel is having an incredibly strong day in the market today as takeover chatter continues to circle around the company. According to various unconfirmed reports, a takeover approach has been made by the company’s rival Hasbro, Inc. (NASDAQ: HAS).




In general, we warn against making moves in the market based on rumors. At the end of the day, rumors are the most common form of market manipulation, and can lead to losses for many if you act on them. However, this particular rumor isn’t like most rumors that we see in the market. In this particular, case, the story of the Barbie and Hotwheels maker being taken over by the owner of brands like Nerf and Monopoly first surfaced on The Wall Street Journal. Considering the source of the rumor, there might actually be something to this one as I doubt that a WSJ contributor would be willing to tarnish their name to publish a bogus rumor.

Many argue that now would be the time for large companies in the toy industry to start to merge. After all, MAT, and others in the industry have seen a massive decline in market cap over the past several years. In fact, even Toys ‘R’ Us frecently filed bankruptcy. However, in a recent statement, Brian Goldener CEO at HAS, had the following to offer about the Toys ‘R’ Us Bankruptcy, suggesting that he doesn’t expect for the bankruptcy to have a profound effect on Hasbro:

[The Toys ‘R’ Us bankruptcy filing] will not be an issue for us in 2018… We paused shipment for a short period as we gain clarity… Our finance and Toys ‘R’ Us commercial teams worked on an agreement we signed a few days ago… We just need to determine what Toys ‘R’ Us can receive in the next few months.”

How The Stock Is Reacting To The News

As we can expect any time rumors break of a potential takeover, Mattel is seeing strong gains in the market today. Of course, our partners at Trade Ideas were the first to alert us to the gains. At the moment (10:56), MAT is trading at $17.49 per share after a gain of $2.87 per share or 19.63% thus far today.

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What We’ll Be Watching For Ahead

Moving forward, the CNA Finance team will continue to keep a close eye on MAT and HAS. After all, we’re interested in learning if this takeover is going to take place. While most rumors in the market tend to lack validity, that doesn’t seem to be the case here. Nonetheless, we’ll continue to follow the story closely and bring the news to you as it breaks!

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