On Thursday, shares of Mattel experienced a notable increase of nearly 20% after the Wall Street Journal revealed that Authentic Brands Group is exploring a takeover bid for the company. The reported offer could value Mattel at more than $20 per share, translating to a market capitalization of around $6 billion. As of Thursday afternoon, Mattel's shares were trading just above $15.
A source familiar with the discussions confirmed to CNBC that while talks are ongoing, they are still in the early stages. This interest from Authentic Brands Group is seen as logical given their focus on entertainment properties aimed at children.
In contrast, Mattel's stock had previously declined by 4% on Wednesday following the announcement of Roger Lynch, the current CEO of Condé Nast, as its new CEO, effective November 2. Lynch, who has been on Mattel's board since 2018, will replace Ynon Kreiz, who is transitioning to a co-CEO role at Paramount and Warner Bros. Discovery.
The juxtaposition of these events highlights the volatility and potential for change within Mattel, making it a focal point for investors watching the toy and entertainment sectors