Now here’s one hell of a developing story that could have a potentially serious impact on the toy industry as we know it. According to an article posted on Bloomberg Business, toy manufacturing heavyweights Hasbro and Mattel have engaged in talks that could lead to the two companies merging together.

Hasbro Inc. and Mattel Inc. have held talks about merging two of the world’s biggest toymakers, according to people familiar with the matter, in a deal that would bring together the owner of the My Little Pony and Furby brands with Barbie and Hot Wheels.

Hasbro approached Mattel about a potential transaction late last year, and the companies have held on-and-off-again talks about a deal, the people said, asking not to be identified as the situation isn’t public. Details of how a transaction might be structured couldn’t immediately be learned. The talks may not lead to a deal, the people said.