Mattel attracts takeover interest from Authentic Brands Group, WSJ reports

Mattel, the creator of Barbie, has reportedly attracted takeover interest from Authentic Brands Group, according to a source familiar with the matter. The potential deal could value the company at over $6 billion, following discussions where Authentic Brands proposed a price of more than $20 per share. Mattel's market cap stands at approximately $3.62 billion, and its shares surged by around 18% to close at $15.04 following the news, first reported by the Wall Street Journal.

However, there is no assurance that Mattel would accept the offer from Authentic Brands, as there is no formal sale process underway. The company's management has not commented on the matter. Authentic Brands did not immediately respond to a Reuters inquiry.

In recent news, Mattel announced that its CEO Ynon Kreiz would step down to become co-CEO at Paramount Skydance, running the combined business with Warner Bros. Roger Lynch, the former CEO of the Conde Nast-owned New Yorker, will succeed Kreiz as Mattel's CEO by November 2026. Lynch's transition could potentially complicate any deal for Mattel, as he works on his strategy.

The toy maker has faced challenges this year, including tariff-related costs and a 33% drop in shares so far. Mattel has been focusing on expanding its entertainment portfolio, capitalizing on the success of the 2023 Barbie movie. Authentic Brands has previously made strategic acquisitions, including Dockers from Levi Strauss, and has been expanding its portfolio to include kids' entertainment brands and hospitality.