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Shares of Mattel surged nearly 20% on Thursday after reports that Authentic Brands Group has privately explored a takeover that could value the toy maker at more than $20 a share. The move sent investors scrambling as the market weighed a potential deal against recent leadership changes at the company.
What was reported
The Wall Street Journal reported that Authentic Brands Group has discussed an offer that would put Mattel’s value at roughly $6 billion, or more than $20 per share, citing people familiar with the matter. The Journal’s account sparked the sharp jump in Mattel stock.
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Confirmation and caution from sources
A person familiar with the conversations told CNBC that talks are underway but remain very preliminary. The source, who requested anonymity because the discussions are private, said the overture aligns with Authentic’s focus on acquiring entertainment properties aimed at children.
“As a matter of company policy, we do not comment on market rumors or speculation,” a Mattel spokesperson said. Authentic declined to comment.
Market reaction and trading
Investors moved quickly: Mattel traded just above $15 per share on Thursday afternoon, after the reports circulated. The stock had closed lower the previous day.
Leadership changes at Mattel
The takeover interest comes shortly after Mattel announced a management shift. Condé Nast CEO Roger Lynch was named the company’s next chief executive and will begin as chairman on Oct. 2, taking on the CEO role by Nov. 2. Lynch has served on Mattel’s board since 2018.
He will replace Ynon Kreiz, who has been named co-CEO of Paramount and Warner Bros. Discovery. Mattel shares closed down about 4% on Wednesday following the leadership news.
