Oct 1 (Reuters) – Mattel has been approached by Authentic Brands Group for a takeover offer that could value the Barbie maker at around $6 billion or more, the Wall Street Journal reported on Thursday, citing people familiar with the matter.
Authentic Brands was discussing a more than $20-a-share offer, according to the report. Shares of Mattel, which has a market capitalization of about $3.62 billion, were up 25% at $15.79 after the report.
There is no guarantee that Mattel will be open to Authentic Brands’ offer, and there is no formal sale process ongoing for the company, the report said.
Mattel declined to comment, while Authentic Brands did not immediately respond to a Reuters request.
Mattel shares closed down about 4% on Wednesday, after the company said its top boss Ynon Kreiz would leave to take on the role of co-CEO at Paramount Skydance and run its combined business with Warner Bros.
At Mattel, Kreiz will be succeeded by Roger Lynch, the former CEO of the New Yorker-owner Conde Nast, on or before November 2026.
Lynch’s transition could complicate any deal for Mattel as he works on his strategy, the WSJ report said.
Consumer goods companies and retailers are battling weak spending as households face higher fuel costs and interest rates in the US.
This year, Mattel has struggled with tariff-related costs, even as it continued its push to build an entertainment portfolio around its brands, following the success of the 2023 “Barbie” movie. Its shares have dropped 33% so far this year.
In May, Mattel investor Southeastern Asset Management called on Kreiz to explore options for the company, including going private, or being acquired by rival Hasbro or a large media company that would value Mattel’s IP assets better than the public market.
Authentic Brands bought Dockers from Levi Strauss earlier this year, adding to its portfolio that includes Guess and Van Heusen.
The company licenses intellectual property of its brands to partners, and has been focusing its M&A strategy to include kids entertainment brands and hospitality.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Joyjeet Das and Shilpi Majumdar)
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