Margot Robbie as Barbie in the movie from Mattel and Warner Bros.
Mattel Warner Bros.
Mattel reportedly facing pressure from investors to consider the sale in the middle of struggling sales and the interest of many buyers in the maker of Barbie.
The American investment company Ariel Investments, the main shareholder in the toy maker, said that businesses struggling to make changes should consider selling to the right buyer, according to a letter from Chairman and CEO John Rogers sent to Mattel’s board of directors, seen by Reuters and the Wall Street Journal.
“According to our estimates, a strategic buyer would pay a significant premium to your current share price,” Ariel’s Rogers said in the letter, saying the company would attract buyers including entertainment companies and private equity firms.
He added that Mattel’s options range from “divesting important assets, mergers and/or outright sales of the company. Mattel shares ended up trading below the flat line in premarket trading and are down 19% since the beginning of the year.
Mattel shares are up from the start of the year.
“We appreciate Ariel Investments’ long-standing investment in Mattel and its continued engagement,” a Mattel spokesperson said in a statement shared with CNBC.
“Our Board of Directors and management team are committed to acting in the best interests of all shareholders and will consider the views expressed in the Ariel Investments letter, as well as the views of Mattel’s other shareholders,” he added.
The company, which is behind the 2023 blockbuster Barbie movie starring Margot Robbie and Ryan Gosling, has struggled to turn around its business as sales of Barbie dolls and other toys have fallen.
Discussions about the sale come after Mattel named a new CEO and chairman, Roger Lynch in September, taking over from predecessor Ynon Kreiz. Kreiz led the company for eight years.
Last week, brand licensing company Authentic Brands expressed takeover interest in Mattel with a potential offer of about $6 billion, according to reports. Mattel shares rose 20% on the news.