Shares in Chorion, the media group that owns the rights to Noddy and the Mr Men, have soared 20% after the firm said it was in takeover talks.
Noddy is a popular kids TV character the world over
Chorion said that it was in "advanced discussions" and that any offer was likely to be in cash at 425p per share.
Such a bid would value the company at about £108m ($188m).
Last year Chorion announced record pre-tax profits of £4.3m, up 35% on the year before thanks to the success of its children's business.
It snapped up Enid Blyton's Noddy brand for £13m in 1996 and has since sold his £10m, 100-episode computer animated TV series around the world.
The group owns the rights to other well known characters including the Famous Five, Hercule Poirot and Inspector Maigret.