Jazwares Jakks Pacific

Over the past few years, mergers and acquisitions have fueled growth for many toymakers as the business of play continues to evolve. Could Jazwares and Jakks Pacific be the next duo to combine forces?

According to the Los Angeles TimesAlleghany Capital Corp., Jazwares’ parent company, put in a takeover offer for Jakks Pacific. The initial offer seeks to buy the maker of Who’s Your Llama?, Real Workin’ Buddies, and a host of licensed product ranging from Harry Potter to Mega Man for 85 cents a share. The offer values the company at about $27.7 million.

In its second quarter earnings report, Jakks Pacific noted bumps in the road, with sales and margin declining as losses gained. Jakks Pacific CEO Stephen Berman stated that the company was looking toward the second half of the year for a rebound led by substantial increases in its Disguise costumes division and a variety of new licensed product set to pop, including items tied to Frozen 2.

An acquisition by Alleghany, which first took stake in Jazwares back in 2014, could result in a merger of sorts — or the two companies could remain completely separate, though that would seem unlikely. In recent years, Jazwares has acquired First Act, ZAG Toys, Russ Berrie, and Applause Brands.

About the author

James Zahn

James Zahn

James Zahn, AKA The Rock Father, is Editor-in-Chief of The Toy Book, a Senior Editor at The Toy Insider and The Pop Insider, and Editor of The Toy Report, The Toy Book‘s weekly industry newsletter. As a pop culture and toy industry expert, Zahn has appeared as a panelist and guest at events including Comic-Con International: San Diego (SDCC) Wizard World Chicago, and the ASTRA Marketplace & Academy. Zahn has more than 30 years of experience in the entertainment, retail, and publishing industries, and is frequently called upon to offer expert commentary for publications such as Forbes, Marketwatch, the Wall Street Journal, the New York Times, USA Today, Reuters, the Washington Post, and more. James has appeared on History Channel’s Modern Marvels, was interviewed by Larry King and Anderson Cooper, and has been seen on Yahoo! Finance, CNN, CNBC, FOX Business, NBC, ABC, CBS, WGN, The CW, and more. Zahn joined the Adventure Media & Events family in 2016, initially serving as a member of the Parent Advisory Board after penning articles for the Netflix Stream Team, Fandango Family, PBS KIDS, Sprout Parents (now Universal Kids), PopSugar, and Chicago Parent. He eventually joined the company full time as a Senior Editor and moved up the ranks to Deputy Editor and Editor-in-Chief.