MAT Stock Closes Flat As Southeastern Reportedly Prepares Proxy Fight To Force Sale Of The Barbie Maker

• Separately, Ariel Investments, another significant holder, has privately told other investors that change is needed at Mattel, the report noted.
• Even if Southeastern proceeds, full board control appears unlikely, the report said.
• Mattel drew takeover interest from Authentic Brands Group in early October when the company privately discussed an offer that could value the Barbie maker at more than $20 a share.

Shares of Mattel (MAT) pared losses and closed roughly flat on Wednesday following a report that a major shareholder is preparing a proxy contest to push for a sale of the toymaker.

Southeastern Asset Management, a longstanding Mattel investor, is considering nominating new directors in a proxy fight aimed at forcing the company to explore a sale, Semafor reported, citing people familiar with the matter. The firm has argued for months that persistent double-digit declines in Fisher-Price and other key lines, combined with margin pressure, justify a strategic review.

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The situation has intensified since CEO Ynon Kreiz departed for a role at Skydance, according to Semafor. Former Condé Nast chief Roger Lynch is now slated to take the helm. However, Southeastern’s plans could change, and no decision has been made, the report said.

Mattel shares closed down $0.2% on Wednesday after a choppy trading session where the stock dropped as much as 2%.

Other MAT Investors Also Call For Sale

Separately, Ariel Investments, another significant holder, has privately told other investors that change is needed at Mattel, Semafor noted. Founder John Rogers recently said on CNBC that the company should sell itself.

Even if Southeastern proceeds, full board control appears unlikely, the report said. Mattel’s bylaws generally restrict an investor to nominating only two directors except in limited circumstances.

Mattel drew takeover interest from Authentic Brands Group in early October when the company privately discussed an offer that could value the Barbie maker at more than $20 a share, or roughly $6 billion or more. The Wall Street Journal first reported the approach on October 1. Talks remained preliminary, with no formal sale process underway, and there was no guarantee Mattel would engage. Authentic’s interest aligned with its strategy of acquiring and reviving distressed brands and undervalued intellectual property.

How Did MAT Retail Traders React?

On Stocktwits, retail sentiment around MAT stock stayed within 'bearish' territory over the past 24 hours, while message volume stayed at 'low' levels.

MAT stock has fallen by about 15% year-to-date.  

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