Ariel Investments, a significant shareholder in Mattel, has urged the company to explore a sale as it struggles with declining sales, particularly following the success of the Barbie film.
In a letter to Mattel's board, Chairman John Rogers highlighted that a strategic buyer could offer a premium to the current share price, suggesting that entertainment companies and private equity firms might find Mattel attractive. Mattel's shares have fallen 19% year-to-date and were trading below previous levels in premarket activity.
The company recently appointed Roger Lynch as CEO, replacing Ynon Kreiz, who had been at the helm for eight years. Additionally, Authentic Brands has shown interest in acquiring Mattel, with reports indicating a potential offer around $6 billion, which led to a 20% increase in Mattel's share price.
The company acknowledged Ariel's input and stated that it would consider the perspectives of all shareholders as it navigates its strategic options