Mattel (MAT) Shares Soar 19% on Potential Buyout Above $20 Per Share

TLDR

• Shares of Mattel climbed 19% Thursday, finishing at $15.04, marking the stock’s best close since mid-March.
• Authentic Brands Group has discussed a potential acquisition of Mattel, according to a Wall Street Journal report.
• The proposed transaction could price Mattel shares above $20 each, representing a total value near $6 billion.
• CNBC’s source characterized the discussions as preliminary and early-stage.
• The acquisition interest follows Mattel’s Wednesday announcement of Roger Lynch as its incoming chief executive.

Shares of Mattel posted a dramatic 19% rally Thursday, finishing at $15.04 following published reports that Authentic Brands Group is pursuing an acquisition of the iconic toymaker. The closing price represented Mattel’s strongest finish since March 13.

Mattel, Inc., MAT

Intraday trading saw the shares peak at $17.23, marking their strongest performance since late February.

The initial report came from The Wall Street Journal, which cited individuals with knowledge of the situation. According to those sources, Authentic Brands has held private conversations about a potential bid exceeding $20 per share.

At that valuation, the transaction would total approximately $6 billion for the company behind Barbie, Hot Wheels, and other beloved toy franchises.

Authentic Brands operates as a licensing and entertainment conglomerate with a diverse portfolio spanning fashion labels, celebrity brands, and media properties.

Source Confirms Early-Stage Talks

An individual with direct knowledge of the situation verified to CNBC that preliminary discussions are underway. The person emphasized that negotiations remain in their initial phases.

Speaking on condition of anonymity due to the confidential nature of the talks, the source noted that Authentic’s pursuit aligns with its strategy of acquiring entertainment brands targeted at younger audiences.

Mattel representatives declined to address the report specifically. A company spokesperson stated that Mattel maintains a policy of not commenting on market speculation or unconfirmed rumors.

Representatives from Authentic Brands also refused to provide comment when contacted.

New CEO Announcement Preceded Takeover News

The acquisition speculation emerged just 24 hours after Mattel revealed its next chief executive. The company tapped Roger Lynch, currently leading Condé Nast, to assume the top role.

Lynch brings existing familiarity with Mattel, having served as a board member since 2018. His transition includes becoming chairman on October 2, with the CEO role officially beginning November 2.

Lynch will succeed Ynon Kreiz, who is departing to take on dual CEO responsibilities at Paramount and Warner Bros. Discovery in a notable career move.

The market’s response to Lynch’s appointment was initially negative. Shares declined 4% Wednesday before Thursday’s takeover speculation completely reversed investor sentiment.

The toymaker has experienced a challenging period overall. Prior to this week’s surge, the stock had been trending downward throughout much of the preceding twelve months.

Thursday’s substantial gain lifted shares back to price levels last observed in early spring. Friday’s premarket activity indicated modest additional upward movement.

At this juncture, the potential acquisition remains unconfirmed speculation without any formal agreement. Neither Mattel nor Authentic Brands has issued official statements regarding a transaction.

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