Hasbro and Mattel are reportedly closer to creating a giant toy company

AP Images / Ariana Cubillos

Barbie is one of Mattel's most popular brands.

• Hasbro has made an offer for Mattel, according to a new Bloomberg report.
• The takeover would merge the world's two largest toy makers.
• A combined company would control some of the world's most popular toy brands, like Barbie, Hot Wheels, Playskool, and Tonka.

Merger talks between Hasbro and Mattel are back on again, according to a new report from The Wall Street Journal.

Hasbro has made an offer on the beleaguered Mattel after a courtship lasting years. Mattel's shares are down by half for the year, making an appealing discount for Hasbro.

Mattel makes some of the most popular toy products, including Barbie, Fisher Price, and Hot Wheels, has struggled this year due to weak sales and lagging demand. Shares have fallen nearly 50% over the year after the company suspended its shareholder dividend and outlined cost-saving measures.

Merger talks between the two companies have been going on for years, though nothing has materialized out of them.

Hasbro has grown to be one of the world's largest toy makers, in part because of a licensing partnership with Disney which enables it to sell themed "Frozen" and "Star Wars" toys.

Mattel market value stands at about $5 billion this year, while Hasbro claims more than double that at $11 billion. Mattel's stock jumped 5% on the news, while Hasbro saw a 3% bump in after-hours trading.