Ariel Investments Urges Mattel to Explore Sale or Merger
Ariel Investments has called on Mattel to consider a sale or merger, claiming the toy company's shares are significantly undervalued.
The asset manager Ariel Investments, which holds a 5.4% stake in Mattel, has urged the toy company to explore a sale, merger, or the divestiture of significant assets. In a letter to the board, Ariel Co-CEO John Rogers stated that Mattel's shares are significantly undervalued and that a strategic buyer would likely pay a significant premium.
This pressure follows a similar request from Southeastern Asset Management in May and a reported takeover approach from Authentic Brands Group last week, which potentially valued Mattel at $6 billion or more. Mattel responded that its board and management are committed to acting in the best interests of shareholders and will consider the views expressed in the letter.
The shareholder demands coincide with a leadership transition at the company. CEO Ynon Kreiz stepped down last month to become co-CEO of Paramount Skydance. Roger Lynch, a current board member and former head of Condé Nast, is scheduled to take over as CEO next month.
