Mattel could be heading toward a major corporate shakeup as one of its largest shareholders reportedly considers a proxy fight to push the toy giant toward a potential sale.
According to reports, Southeastern Asset Management is considering nominating new directors to Mattel’s board after months of urging the company to explore selling itself.
The pressure follows double-digit sales declines across Fisher-Price and other important business segments, along with ongoing challenges to the company’s profit margins.
The situation has intensified following the departure of former Mattel CEO Ynon Kreiz to join Skydance. His replacement, former Condé Nast CEO Roger Lynch, was met with a 5% decline in Mattel’s stock price. Shares have reportedly fallen approximately 15% this year.
However, Mattel’s stock rebounded following a Wall Street Journal report suggesting that Authentic Brands Group had expressed interest in a potential acquisition.
Another major shareholder, Ariel Investments, has also reportedly expressed concerns about Mattel’s direction. Ariel founder John Rogers recently stated during a CNBC appearance that he believes the company should consider selling itself.
While Southeastern Asset Management has not made a final decision regarding a proxy fight, the possibility raises significant questions about Mattel’s future.
Mattel has stated that it regularly engages with shareholders but declined to comment further.
For collectors, a potential sale or corporate restructuring could have implications for Mattel’s major brands, including Masters of the Universe, Hot Wheels, Barbie, WWE, and its expanding DC action figure business. However, no changes to these product lines have been announced.
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