Mattel shares jumped after the Wall Street Journal reported that Authentic Brands Group approached the toy maker about a takeover that could value it at around $6 billion or more. The report comes two days after Mattel said CEO Ynon Kreiz would leave for Paramount Skydance, a transition that could complicate any deal.
Mattel shares rose 25% to $15.79 on Thursday after the Wall Street Journal reported that Authentic Brands Group had approached the Barbie maker about a takeover offer. The report, citing people familiar with the matter, said the deal could value Mattel at around $6 billion or more.
Offer details still fluid
Authentic Brands was discussing a more than $20-a-share offer, according to the report, against a company that currently carries a market capitalization of about $3.62 billion. There is no guarantee Mattel will be open to the offer, and no formal sale process is underway, the report said. Mattel declined to comment, while Authentic Brands did not immediately respond to a Reuters request.
Leadership change adds uncertainty
The takeover interest surfaces just two days after Mattel shares closed down about 4% on news that CEO Ynon Kreiz would leave to become co-CEO at Paramount Skydance. Kreiz will be succeeded by Roger Lynch, the former CEO of Conde Nast, on or before November 2026. The WSJ report said Lynch's transition could complicate any deal for Mattel as he works out his own strategy.
In May, Mattel investor Southeastern Asset Management called on Kreiz to explore options for the company, including going private or being acquired by rival Hasbro or a large media company that would value Mattel's intellectual property better than the public market does.
A tough year for Mattel
Mattel has struggled with tariff-related costs this year even as it keeps building an entertainment portfolio around its brands, following the success of the 2023 "Barbie" movie. Its shares have dropped 33% so far this year. Authentic Brands, for its part, bought Dockers from Levi Strauss earlier this year, adding to a portfolio that includes Guess and Van Heusen, and has been focusing its M&A strategy on kids' entertainment brands and hospitality.
Source: Investing.com
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