Mattel draws takeover interest from Authentic Brands Group, WSJ reports

Mattel, the Barbie maker, has attracted takeover interest from brand-licensing giant Authentic Brands Group, the Wall Street Journal reported on Thursday, citing people familiar with the matter.

Authentic Brands has privately discussed an offer that could value Mattel at more than $20 a share, or about $6bn or more, according to the report. Mattel has a market capitalisation of about $3.62bn. Shares settled 18.8% higher at $15.04 on Thursday, after trading as high as $17.23 intraday — its biggest percentage gain in more than seven-and-a-half years.

There is no guarantee the two sides reach a deal, and another suitor could yet emerge, the Journal reported. A formal sale process is not currently under way. A Mattel spokesperson told Barron’s the company does “not comment on market rumors or speculation”.

The approach lands days after a leadership shake-up: chief executive Ynon Kreiz is stepping down as chairman and chief executive effective Friday to take a senior leadership role at Paramount following its combination with Warner Bros. Discovery. Roger Lynch, Mattel’s independent lead director and Condé Nast chief executive, becomes chairman on Friday and takes over as chief executive on or before 2 November.

Mattel shares are down 19.9% this year, on pace for their worst year since 2018. Authentic Brands has built its empire buying and reviving distressed brands, including roughly $1bn for Lee from Kontoor Brands and $1.4bn to take Guess private. Investors, notably Southeastern Asset Management, have been pressing Mattel to unlock the value of its brands.