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There is news that one of the most well known companies that is based in RI (Hasbro of Pawtucket) is in merger talks with the other titan of its industry (Mattel of El Segundo, CA).
If the Hasbro presence in RI were to leave or be diminished, it could be a big blow to the state. In addition to many good paying jobs, Hasbro is a big local philanthropic supporter.
Hasbro currently houses most of its local office operations at its Pawtucket HQ on Newport Avenue, an East Providence facility further down Newport Avenue (Narragansett Park), and a building at LaSalle Square in Providence.
Relocating employees to the El Segundo area would be quite expensive with the boosts in salary to make up for southern CA's brutal high cost of living -- where single family homes average $1.5 to $2 million. Shacks listed at $900,000. 50-60 year mortgages. Not to mention the traffic, crime, and freeway madness in that industrialized area. People looking at living approx. 1.5 hrs. away for a reasonably sane lifestyle. Personally, I love California, but that area is the pits.
The other way around would be a boost to RI -- relocate the CA Mattel folks to RI. I've worked with buyers from CA who would come to RI with pockets full of cash, and would have enough to buy two houses rather than pay capital gains. Nothing has changed in that arena either.
I hope this thread is followed with interest and clarity.
Hmmm, based on the relative sizes of the companies, it could be either a merger of equals or the acquisition by Mattel of Hasbro . . . . If the former, there's a better chance of the combined company's executive and administrative functions (or some parts thereof) remaining in RI than if Mattel acquires Hasbro . . . typically, at least.
However, even if the parties come to an agreement to merge, I think there might be anti-trust issues in the eyes of DOJ and FTC.
I could be wrong about this, but I remember hearing recently that Hasbro is doing much better than Mattel. That may suggest they're in a better position to buy Mattel. It'll be presented as a merger of equals either way, it always is, but I feel like Hasbro is perceived as the more successful company right now and is therefore more likely to take control of a combined entity.
Completely unscientific, I know, but if you google "mattel struggling" you get a lot of stories about Mattel doing badly, whereas if you google "hasbro struggling" you get stories about Hasbro struggling to produce Star Wars toys quickly enough to meet demand.
I know a couple of people who lived in Cincinnati and relocated to Rhode Island when Hasbro merged with Kenner years ago. That was a long time ago, but Hasbro still has a history of doing it -- maybe we'll see the same kind of influx from El Segundo.
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