Mattel IncMAT
Mentioned
Impact on assets 1
Consumer Discretionary
Mattel IncMattel IncAriel Investments, which owns a 5.4% stake in Mattel, is pushing the Barbie maker to explore a sale or other strategic alternatives, saying the company's progress on performance and profitability has stalled, according to Reuters. In a letter to Mattel's board, Ariel Co-CEO John Rogers said the toy maker's shares remain significantly undervalued and that a strategic buyer would pay a significant premium to the current share price. Ariel outlined options including the divestiture of significant assets, a merger or an outright sale, and said Mattel's portfolio could attract interest from other toy companies, entertainment companies and traditional private-equity firms. The push follows similar pressure from Southeastern Asset Management, which in May urged Mattel to consider strategic alternatives including a sale or going private, and last week's takeover interest from Authentic Brands Group at more than $20 a share, or $6B. Mattel's profitability has weakened after the 2023 Barbie boost, with Q2 adjusted operating income of $38.8M, down 60% from a year earlier, and adjusted gross margin falling to 48.6% from 51.2%.
Mattel Inc