A recipe for
disaster corporate success: Take 1 part struggling Mattel Toys, combine it with 1 part more of longtime rival, Hasbro Toys, then sprinkle with a dash of shrinking consumer interest and a smattering of unpalatable market effects (such as crumbling Toys ‘R Us (TRU) infrastructure), and what do you have? We don’t know, but the world’s two biggest toy companies appear to be contemplating a merger that (they hope) would cook up profitable “hot” products (to display on those vanishing TRU store shelves?), raise “Has/Mat” stock prices, and boost their newly combined mega-company’s bottom line. But WILL it?
Will all of this corporate merger/restructuring simply result in a bland melange of bombast trumpeting, “Hey, look at us, we’re doing something BIG about our troubled toy industry.” Or is this all going to boil over into an even bigger, blander pot of “kids-just-don’t-care-about-toys-anymore” reality stew? It will be interesting to toy fans and collectors to find out. Here’s the latest article we’ve found on this possible merger and its hoped-for final effects. Read it, watch the Mattel CEO video, and decide for yourself whether this merger is a good idea.
Bottom Line: This move seems like too MUCH, and too LATE, to us. If the two companies combine, wouldn’t there be less urgency, less rivalry, less competitive spirit and less innovation? Monopoly the game, may be fun to play, but monopolies in real life rarely work out well for consumers. Company execs and stockholders may benefit in the short term, but toy fans in general will probably be quickly bored by all the new “tech toys” Mattel’s CEO seems to be so enamored of. (And all this hoopla looks like it’ll be one more nail in GIjOE’s “low tech” coffin box.)