In a letter to the board, a major shareholder listed a sale, merger or divestiture of significant assets as possible options.
Ariel Investments, a major Mattel shareholder, says the Barbie maker should consider selling the company to the right buyer. The position was set out in a letter from Ariel Chairman and Co-CEO John Rogers to Mattel’s board, seen by Reuters and The Wall Street Journal.
Rogers wrote that a strategic buyer could pay a significant premium to Mattel’s current share price. He listed an outright sale, a merger or the divestiture of major assets as possible options. Ariel has not made a public takeover offer, and Mattel has not announced a sale process.
Mattel told CNBC that its board and management would consider the views in Ariel’s letter as well as those of other shareholders. The company said it remained committed to acting in the interests of all shareholders. At the time of CNBC’s report, Mattel shares were little changed in premarket trading and were down about 19% since the start of the year.
The letter comes as Mattel tries to revive its business after sales of Barbie and other toys weakened. Last week, Authentic Brands Group expressed interest in a takeover. Reports put a potential valuation at about $6 billion. Mattel named Roger Lynch its new CEO and chairman in September, replacing Ynon Kreiz, who led the company for eight years. Ariel is asking the board to assess strategic options, but no decision to sell has been announced.