- Ariel Investments, a major Mattel shareholder, urged the board to pursue a sale to a strategic buyer or private equity firm, according to a letter from Chairman and Co-CEO John Rogers seen by Reuters and the Wall Street Journal.
- Ariel argues a strategic buyer would pay a significant premium to Mattel's current share price and that options range from divesting significant assets to a merger or an outright sale.
- Mattel shares are down 19% year-to-date as sales of Barbie and other toys have declined and profitability has struggled in recent years.
- The sale pressure lands during a leadership transition, with Roger Lynch set to become CEO and chairman, succeeding Ynon Kreiz, who led the company for eight years.
- Brand licensing firm Authentic Brands expressed takeover interest in Mattel with a potential offer valued at about $6 billion; Mattel shares rose 20% on that report.
- Mattel's board said it is committed to acting in the best interests of all shareholders and will consider the views in Ariel's letter along with those of other shareholders.
Quotes
“We appreciate Ariel Investments' longstanding investment in Mattel and their continued engagement”
“Our Board of Directors and management team are committed to acting in the best interests of all shareholders and will consider the views expressed in Ariel Investments' letter, as well as the views of Mattel's other shareholders”