Mattel Shares Surge 18.8% on Potential Acquisition by Authentic Brands
Mattel shares soared 18.8% following reports that Authentic Brands Group is eyeing a buyout valuing the toy maker above $6 billion. The news comes as CEO Ynon Kreiz steps down.
Mattel shares surged 18.8% on Wall Street today following a report by the Wall Street Journal that the toy maker is an acquisition target for Authentic Brands Group. According to the report, the brand management firm is discussing a proposal that could value Mattel at over $20 per share, or approximately $6 billion and above. Mattel stock closed today at a price of about $15. A person close to the talks confirmed to CNBC that discussions are underway, but cautioned that they are very preliminary. The source added that Authentic's approach to Mattel makes sense, as the brand company has an interest in entertainment assets, particularly those tailored for children.
Mattel stated that 'as a matter of policy, we do not comment on market rumors or speculation.' Authentic declined to comment. Yesterday, Mattel announced that Israeli executive Ynon Kreiz will step down as CEO and chairman after eight years in the role. He will be succeeded by Roger Lynch, who has served on Mattel's board since 2018. Kreiz was appointed CEO of Paramount-Warner Bros. In May, investment firm Southeastern Asset Management, a Mattel investor, called on Kreiz to explore options for the company, including taking it private or being acquired by rival Hasbro or a major media company.
Authentic Brands Group earlier this year acquired Dockers from Levi Strauss, expanding its brand portfolio, which includes fashion brand Guess and denim brand Lee. The company licenses its brands' intellectual property to business partners, and recently it has been focusing its mergers and acquisitions strategy to also include children's entertainment and hospitality brands.
