Authentic Brands Group has approached Mattel about a takeover that could value the Barbie maker at around $6 billion or more, a source familiar with the matter told Reuters.
Authentic Brands was discussing takeover interest of more than $20 per share, the source said. Mattel shares closed up about 18% at $15.04 after the news, which The Wall Street Journal reported first. The company has 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 under way, the source said. Mattel declined to comment. Authentic Brands did not immediately respond to a Reuters request for comment.
Leadership change
Mattel shares had closed down about 4% on Wednesday after the company said CEO Ynon Kreiz would leave to become co-CEO of Paramount Skydance and run its combined business with Warner Bros.
Roger Lynch, the former CEO of Conde Nast, the owner of The New Yorker, will succeed Kreiz on or before November 2026. According to the Journal, Lynch’s transition could complicate any deal as he works on his strategy.
Pressure on the toy maker
Consumer goods companies and retailers are battling weak spending as U.S. households face higher fuel costs and interest rates. Mattel has struggled this year with tariff-related costs, even as it continued building an entertainment portfolio around its brands after the success of the 2023 “Barbie” movie. Its shares have dropped 33% so far this year.
In May, Mattel investor Southeastern Asset Management urged Kreiz to explore options, including going private or being acquired by rival Hasbro or a large media company that would value Mattel’s intellectual property more highly than the public market does.
Authentic Brands bought Dockers from Levi Strauss earlier this year, adding to a portfolio that includes Guess and Van Heusen. The company licenses the intellectual property of its brands to partners and has been broadening its acquisition strategy to include kids’ entertainment brands and hospitality.
