Mattel shares rise after reports of Authentic Brands takeover interest
Mattel shares surged nearly 20% following reports that Authentic Brands Group is considering a takeover of the toymaker. The potential deal comes as Mattel prepares for a leadership transition with Roger Lynch set to become CEO.
Why it matters
A potential $6 billion acquisition of a major toy manufacturer signals significant consolidation and interest in entertainment-linked consumer goods.
Shares of Mattel rose nearly 20% on Thursday after the Wall Street Journal reported that the toymaker had attracted takeover interest from Authentic Brands Group.
The brand licensing company has privately discussed an offer that could value Mattel at more than $20 per share, or about $6 billion, the Journal reported, citing people familiar with the matter. Mattel traded just above $15 per share on Thursday afternoon.
A person familiar with the talks confirmed to CNBC that there are discussions, but cautioned that they are very preliminary. The person asked not to be named because the discussions are private. The source added that the overture makes sense because Authentic has interest in entertainment properties, particularly those tailored to kids.
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