Barbie-maker Mattel, dealing with a sliding stock and now a chief-executive transition, recently attracted takeover interest from brand-licensing giant Authentic Brands Group, according to people familiar with the matter. Authentic Brands Group has made an approach and been privately discussing an offer that could value Mattel at more than $20 a share, or around $6 billion or more, some of the people said.
Mattel shares had dropped by more than 30% this year and on Wednesday, the toy maker named Condé Nast Chief Executive Roger Lynch its next CEO. The shares fell again to close at $12.66, giving the company a market value of about $3.6 billion. The stock rose more than 20% on Thursday, rising above $15, after The Wall Street Journal reported on the approach.
Lynch, who was already on the board, will become chairman on Friday and take over as CEO in the next month, the company said Wednesday. He succeeded Ynon Kreiz, who is leaving to become co-CEO of Paramount. There is no guarantee Mattel will be receptive to Authentic’s approach or the two sides will reach a deal, the people cautioned. Another suitor for Mattel could also emerge, they said.
Lynch’s pending appointment as new CEO could complicate any deal as he tries to figure out his strategy. A formal sale process for Mattel isn’t currently under way, one of the people said. The maker of Hot Wheels cars and American Girl dolls has been struggling to grow beyond just toys and into entertainment. Its shares peaked over a decade ago.
Source: Wall Street Journal US Business · Summarized by HeadlinesBriefing