Mattel’s stock experienced a significant rally on Thursday following media reports indicating that Authentic Brands Group has shown interest in acquiring the toy company. According to sources cited by the Wall Street Journal, preliminary discussions have centered on a valuation exceeding $20 per share, which would represent a total deal value of approximately $6 billion or higher. At the time of reporting, Mattel shares were trading just above $15 per share.
A source with knowledge of the discussions confirmed to CNBC that conversations between the parties are ongoing, though emphasized their preliminary nature. The source indicated that Authentic Brands Group’s pursuit aligns with the company’s strategic interests, particularly its appetite for entertainment properties geared toward children. Authentic Brands Group is a brand licensing and management company that acquires and manages consumer brands.
Neither Mattel nor Authentic Brands Group provided substantive comments on the matter. Mattel issued a standard statement declining to address market speculation, while Authentic declined to offer any public statement regarding the reported discussions.
The takeover interest announcement came the day after Mattel revealed leadership changes within the company. Roger Lynch, who has served on Mattel’s board since 2018, was named to succeed current leadership. Lynch will assume the role of chairman beginning Oct. 2, with his transition to CEO occurring by Nov. 2. He will replace Ynon Kreiz, who intends to transition to a co-CEO position at Paramount and Warner Bros. Discovery.
The market reaction to the takeover reports contrasted with investor sentiment following the leadership announcement, as shares had declined 4% on the day the new CEO announcement was made.
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