Shares of Mattel climbed nearly 20% on Thursday following a Wall Street Journal report that the toy manufacturer has received acquisition interest from Authentic Brands Group. According to the report, which cited individuals aware of the situation, Authentic has privately floated an offer that could value the company at more than $20 per share, equating to approximately $6 billion. At the time of the afternoon trading session, Mattel’s stock was hovering just above the $15 mark.
A source familiar with the negotiations confirmed to CNBC that discussions are underway but emphasized that the talks remain in very early stages. The individual requested anonymity due to the confidential nature of the process and noted that the proposal aligns with Authentic’s broader strategy to acquire entertainment properties, particularly those appealing to children.
Representatives for both companies declined to provide detailed commentary. A Mattel spokesperson stated that the company does not comment on market rumors or speculation, while Authentic Brands Group offered no statement.
The potential acquisition follows a significant leadership transition announced by Mattel on Wednesday. The company revealed that Condé Nast CEO Roger Lynch will assume the role of chief executive officer, succeeding Ynon Kreiz, who is set to become co-CEO of Paramount and Warner Bros. Discovery. Lynch, a board member since 2018, is scheduled to begin as chairman on October 2 and officially take over as CEO by November 2.
Despite the recent optimism surrounding the takeover reports, Mattel shares had closed down 4% on Wednesday amid the leadership changes.
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