Updated version 2 - According to The Wall Street Journal, Mattel has attracted acquisition interest from Authentic Brands Group.

Additional background information and details from the report have been added throughout the article.

Reuters, October 1 - According to a report by The Wall Street Journal on Thursday citing people familiar with the matter, Authentic Brands Group has approached Mattel (MAT.O) regarding a potential acquisition, with the offer possibly valuing the Barbie doll maker at around $6 billion or more.

According to reports, Authentic Brands Group is discussing an acquisition offer above $20 per share. Mattel currently has a market capitalization of about $3.62 billion, and its share price rose by 25% to $15.79 after the report was published.

The report noted that there is no guarantee Mattel will accept Authentic Brands' offer, and the company is not currently conducting any formal sale process.

Mattel declined to comment, while Authentic Brands did not immediately respond to a Reuters request for comment.

On Wednesday, Mattel's stock closed down about 4% after the company announced that its Chief Executive Officer Ynon Kreiz would step down to become Co-Chief Executive Officer at Paramount Skydance (PSKY.O) and oversee its merger operations with Warner Bros. (WBD.O).

At Mattel, Kreiz will be succeeded by Roger Lynch, former CEO of Conde Nast, parent company of The New Yorker, with the handover scheduled by or before November 2026.

The Wall Street Journal reported that as Lynch moves to implement a new strategy, the transition process may complicate any possible deal for Mattel.

With American households facing higher fuel costs and interest rates, consumer goods companies and retailers are struggling with weak consumer demand.

This year, Mattel has struggled with tariff-related costs, though following the success of the 2023 Barbie movie, the company has continued to build an entertainment portfolio around its brands. Its stock price has fallen 33% year to date.

In May, Mattel investor Southeastern Asset Management called on Kreiz to explore all options for the company (link), including privatization, an acquisition by rival Hasbro (HAS.O), or being acquired by a large media company better able to recognize the value of Mattel's intellectual property assets than the public markets.

Earlier this year, Authentic Brands acquired Dockers from Levi Strauss (LEVI.N), adding it to a brand portfolio that already includes Guess and Van Heusen.

The company licenses the intellectual property of its brands to partners and has been working to incorporate children's entertainment brands and the hospitality industry into its acquisition strategy.

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