Ariel Investments is urging Mattel’s board to examine a sale, merger or major asset divestitures amid leadership changes and stalled performance.
Mattel is facing growing investor pressure to consider a sale or other major strategic changes as the company enters a leadership transition.
Ariel Investments, which owns about 5.4% of the Barbie and Hot Wheels maker, has urged Mattel’s board to examine alternatives including an outright sale, a merger or the divestiture of significant assets.
The push follows a stretch of weaker profitability after the initial boost surrounding the blockbuster Barbie movie. Mattel shares have also come under pressure this year.
The company is preparing for a CEO transition, with Roger Lynch set to succeed Ynon Kreiz, who is moving into the co-CEO role at Skydance.
Ariel argues that Mattel’s brands could command a significant premium from a strategic buyer, while Mattel now faces heightened scrutiny over how it intends to unlock value from its portfolio.
Source: Reuters.
