Hasbro approached Mattel about a potential transaction late last year, and the companies have held on-and-off talks about a deal, the people said. Representatives for Mattel declined to comment, while representatives for Hasbro didn’t immediately respond to requests for comment.
Mattel shares rose 4 percent to $33.03 today, valuing the company at about $11.2 billion. Hasbro rose 1.6 percent to $76.19 after climbing as high as $78.45, valuing the company at about $9.5 billion.
Last week, Mattel unveiled Barbie dolls with a wider array of body types and skin tones in an effort to expand the brand’s appeal. Hasbro is the toy licensee for Disney’s top properties, including Star Wars: The Force Awakens, Disney Princess, and Disney Frozen.