Mattel investor Ariel pushes for sale as turnaround stalls
MAT•Ariel Investments, which holds 5.4% of Mattel, urged the company to explore a sale, saying its shares remain significantly undervalued. Authentic Brands approached Mattel last week in a move that could value the toymaker at around $6 billion or more, a source said.
1. Ariel urges strategic review
Ariel Investments urged Mattel’s board to explore a sale, saying progress in performance and profitability had stalled. The investor said Mattel could consider divesting significant assets, merging or selling the company, and that a strategic buyer would pay a significant premium, by its estimates.
2. Mattel responds
Mattel said its board and management would consider Ariel’s views alongside those of other shareholders. Mattel CEO Ynon Kreiz stepped down late last month and will become co-CEO at Paramount Skydance; board member Roger Lynch is set to take over as Mattel CEO next month.
3. Takeover approach reported
A source familiar with the matter said Authentic Brands approached Mattel last week, potentially valuing the toymaker at around $6 billion or more. The source said there was no guarantee Mattel would be open to the approach and no formal sale process was ongoing. Mattel shares have lost a fifth of their value this year despite a rally after news of the approach.
