Mattel’s stock climbed sharply on Thursday following reports that Authentic Brands Group, a brand licensing company, had privately discussed acquiring the toymaker. According to the Wall Street Journal, the proposed transaction could value Mattel at more than $20 per share, representing approximately $6 billion in total value. At the time of the report, Mattel’s shares were trading just above $15 per share.
A source familiar with the discussions confirmed to CNBC that preliminary talks were underway between the two companies. The source indicated that such a combination would be logical given Authentic Brands Group’s existing focus on entertainment properties, particularly those aimed at children. However, the source emphasized that the discussions remained in very early stages. Both companies declined to provide official comment on the matter, with Mattel citing its standard policy against discussing market rumors and speculation.
The acquisition interest emerged shortly after Mattel announced significant leadership changes. On Wednesday, the company disclosed that Roger Lynch, the CEO of Condé Nast and a member of Mattel’s board since 2018, would assume the role of chairman beginning Oct. 2 and take on the CEO position by Nov. 2. Lynch will replace Ynon Kreiz, who has transitioned to a co-CEO role at both Paramount and Warner Bros. Discovery. Mattel’s shares had declined 4% on Wednesday in response to the leadership transition announcement before rebounding substantially the following day on news of the acquisition interest.
Article Attribution | Read More at Article Source
Article summary produced by Claude AI