Mattel shares surged nearly 20% on Thursday after the toymaker was reported to have attracted takeover interest from Authentic Brands Group, in a potential deal valuing the company at about $6 billion.
The Wall Street Journal reported that the brand licensing company had privately discussed an offer of more than $20 a share. Mattel’s shares were trading just above $15 on Thursday afternoon.
A person familiar with the discussions confirmed that talks had taken place but cautioned that they remained at a very preliminary stage. The person said the approach made sense because Authentic Brands Group was interested in entertainment properties, particularly those aimed at children.
Mattel said: “As a matter of company policy, we do not comment on market rumors or speculation.” Authentic declined to comment.
The reported takeover interest comes a day after Mattel announced that Roger Lynch, the chief executive of Condé Nast, would become its next chief executive. Mattel shares closed 4% lower on Wednesday.
Lynch, who has served on Mattel’s board since 2018, is due to become chairman on October 2 and chief executive by November 2.
He will succeed Ynon Kreiz, who has been named co-chief executive of Paramount and Warner Bros Discovery.
