Updated Version 4 - Mattel appoints Lynch from Condé Nast as CEO, Kreiz, who led brand revitalization, steps down

Paragraphs 3 and 4 add details about Kreiz joining Paramount, and paragraph 8 includes analyst commentary.

Neil J Kanatt

Reuters, September 30 - Mattel's long-serving Chief Executive Officer Ynon Kreiz is set to step down, having transformed the toy maker into a broader entertainment company. Board member Roger Lynch will take over the role; Lynch is currently the head of Condé Nast, the parent of Vogue and The New Yorker.

This leadership change comes just ahead of the crucial holiday shopping season. Despite Mattel's effort to sustain the momentum from the 2023 box office hit Barbie, the company still faces cost pressures from tariffs and has been under activist investor scrutiny due to continued declines in shareholder value.

Bloomberg cited a source familiar with the matter, reporting that since 2018 Kreiz has led Mattel and, following Paramount and Skydance PSKY.O's completion of the $110 billion (link) acquisition of Warner Bros., Kreiz will join Paramount Skydance in a senior position.

Both Mattel and Paramount declined to comment, and Kreiz has not responded to requests for comment.

Kreiz has focused on turning Mattel's intellectual property into movies, TV shows, and digital games, leading to the global smash hit Barbie and fueling demand for related merchandise.

However, during Kreiz’s tenure as CEO, Mattel shares rose only 5%, far underperforming the nearly 200% gain in the S&P 500 Index .SPX over the same period.

The maker of Barbie dolls and Hot Wheels saw its stock price fall 4% in afternoon trading.

UBS analysts wrote in a report: “Given a challenging macro environment, higher interest rates, and the potential for fourth-quarter results to be highly impactful, this announcement adds another layer of uncertainty to already sensitive investor sentiment.”

Earlier this year, investor Southeast Asset Management urged Mattel to explore various options (link), including selling the company or merging with rival Hasbro HAS.O.

Lynch has served on Mattel's board since 2018 and is expected to assume the CEO role on November 2. Meanwhile, during Lynch’s roughly seven-year tenure as CEO of Condé Nast, the group has appointed board member Mike Perlis as interim CEO.

Lynch, soon to lead his sixth company, is best known for having headed Condé Nast, Pandora, and Sling TV. He brings expert knowledge in media, satellite, and digital fields but lacks direct experience in the toy sector.

The Toy Book Editor-in-Chief James Zahn said: “Roger’s appointment comes at a time when the boundary between consumer products and media is more blurred than ever, so having an experienced media operator at the helm makes sense.”

Last month, Mattel's second-quarter revenue exceeded (link) expectations, and the annual target was reiterated, but tariff-related costs and investments to boost sales led to profits falling short of market expectations.

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