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Following current trends of corporate consolidation — think airlines and media companies — Hasbro's offer to Mattel shouldn't seem like too much of a surprise. However, many people were taken aback by the approach from three days ago.

This surprise is apparent in the fact that Mattel stock jumped 20% while Hasbro jumped 8% — investors are pretty happy that this deal is going down. But why might this be?

The Wall Street Journal first reported on Nov. 10 that a potential deal is in the works. This could be due to the fact that Mattel's shares have dropped 47% this year while Hasbro's stock prices have increased 18%.

If the two companies should combine, their shared market price would be around $16 billion. With this strong of a company value, there are many benefits that come with the impending consolidation.

Competition with electronics and tech

Customers walk towards a branch of the toy store Toys R Us on September 19, 2017 in Luton, England. Getty Images

This report is following the fact that Toys'R'Us has recently been bankrupted — as of now, the company owes Mattel at least $135 million which contributed to its drop in shares.

Traditional toys don't have that much appeal in the age of tablets and VR. Hasbro could be attempting to get ahead of the curve of electronics and technology by consolidating.

E-commerce

A worker prepares packages for delivery at an Amazon warehouse on September 4, 2014 in Brieselang, Germany.Getty Images

Another electronic aspect of competition may be from Amazon.com, Inc — Amazon is so popular in the current market, especially with their Prime option. Perhaps Hasbro will also expand more into e-commerce too.

Competition with other companies

A worker arranges a shelf of Hasbro Inc. Nerf Blaster products at a Target Corp. location in Emeryville, California, U.S., on Thursday, July 20, 2017.Getty Images

Traditionally, Hasbro has made over 80 brands of toys such as My Little Pony, Nerf, Transformers, Play-Doh, Littlest Pet Shop and Monopoly, with rights to "Star Wars." If you were an '80's kid, you've probably played with these toys.

Mattel has around 20 brands such as Barbie, Hot Wheels, Fisher-Price and the coveted American Girl dolls — also brand deals with Disney, giving them an edge over the animated market.

With this takeover, Hasbro can focus on extending its influence rather than getting ahead of their competition.

Shelf space

Lego enthusiasts attend the Bricklive at the Scottish Exhibition and Conference Center on July 20, 2017 in Glasgow, Scotland.Getty Images

Hasbro also probably wants more shelf space — currently, Lego controls most of the market's shelf space. If the deal goes through, Hasbro can cut out one of its major competitors for this exclusive real estate.

Why this could be disastrous

Going back to what this really is — corporate consolidation — could be dangerous to small businesses. Big companies have been demolishing small businesses — a prime example being Luxottica separating from Oakley sunglasses due to pricing. Oakley's stock prices thus collapsed.

Corporate consolidation also tricks you into thinking that small businesses are independent when they aren't really — especially with companies such as Tom's of Maine and Burt's Bees. Instead, they're both owned by large corporations.

Hasbro and Mattel's merging could thus continue this pattern of big corporations crushing small businesses.

However, this deal might not even go through — Hasbro has approached Lions Gate Entertainment, DreamWorks Animation SKG and Mattel twice before, with no success.

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The Internet of Things — maybe you've heard of the phrase, maybe you haven't. Maybe you've heard it muttered around the workplace as your colleagues talked about their new voice-activated devices.

The IoT has been growing steadily since the start of PCs and smartphones. From there, we've come out with more interconnected devices including smartwatches and televisions — maybe you've heard of our little friend, Alexa? Now, it's estimated that by 2020, there will be more than 24 billion IoT devices on the planet.

Source: BI Intelligence Estimates, 2015

However, IoT devices don't have to specifically be computers or screens really — they come in the form of our everyday devices. Smart cameras and water bottles can aid you at the beach while smart plugs and safes can help you out in your dorm or apartment.


Thus, IoT isn't just about the interconnection of devices anymore — it's about the way we live and think. When you build a smart home, you're not just using devices — you're a part of them. You think of ways to program your lights and AC that's not just shutting the blinds or pressing buttons on the wall.

Same with the way we learn — more and more schools now are incorporating tablets and interactive smartphone lessons into the classroom. Teachers can cut down on interruption time from transitioning, distributing and other menial tasks along with saving textbook resources.

But, how did we get here? Who decided that IoT was worth discovering and promoting?

According to 2014 Goldman Sachs and BI Intelligence Estimates, the average price of IoT hardware has been dropping and businesses will be the top investor of IoT. Also, agricultural companies, doctors, oil companies, insurance companies, retail, government and many more sectors are all increasing their use of IoT devices and sensors.

However, there are also very serious concerns about privacy and security, according to BI Intelligence. Hackers can easily get into accounts because IoT devices lack cybersecurity protections. This concern is oftentimes associated with government projects and can be possible even with self-driving cars.

But don't worry, engineers are working on the kinks in the system. In the meantime, you can keep up with IoT news from various tech websites, but you can also consult your friends, family and acquaintances.

If you're looking to build up your "smart life," most IoT devices have a home base on a smartphone — so start your build up there if you haven't already. IoT will definitely make your life easier and better — get on board before it's too late!