Shares of Mattel, the company behind Barbie and Hot Wheels, jumped almost 19% on Thursday after a report that the licensing group Authentic Brands has privately discussed buying it, a move that came just as the toymaker prepares for a change at the top.
What was reported
The Wall Street Journal reported that Authentic Brands Group has made an approach and has been privately discussing an offer that could value Mattel at more than $20 a share, or about $6 billion or more. That would represent a premium of more than 58% to Wednesday’s closing price of $12.66.
Mattel’s stock closed at $15.04, up $2.38 on the day, after trading as much as 20% to 22% higher during the session. A person familiar with the matter told CNBC that discussions are real but very preliminary. A Mattel spokesperson said the company does not comment on market rumours or speculation.
No formal offer has been made public, and there is no certainty that one will follow. The gap between Thursday’s close and the reported $20 price shows that investors are still weighing the odds of a deal.
A leadership handover at the same time
The takeover report arrived on the heels of a major management announcement. On Wednesday, Mattel said longtime chairman and chief executive Ynon Kreiz will step down effective October 2 to become co-chief executive of the newly merged Paramount and Warner Bros. Discovery, alongside David Ellison. Mattel named Roger Lynch, chief executive of Condé Nast and a member of its board, as his successor.
Investors did not welcome that news at first. Mattel shares fell about 4% on Wednesday as the market digested the loss of the executive who has led the company’s push into films, television and other entertainment projects built around its toy brands.
Who is Authentic Brands?
Authentic Brands Group is privately held and was built by founder Jamie Salter into one of the world’s largest brand-licensing businesses. It owns Reebok, Brooks Brothers and Sports Illustrated, among others, and has often grown by buying brands from companies in difficulty. Rather than making products itself, it typically licenses the names to manufacturers and retailers.
A person familiar with the talks said an approach for Mattel would make sense because Authentic is interested in entertainment properties, particularly those aimed at children. Mattel owns Barbie, Hot Wheels, Fisher-Price and Thomas & Friends, and its products are sold in more than 150 countries.
A tough year for the shares
Despite Thursday’s surge, Mattel stock has had a difficult year. Before the report, it was down roughly 37% in 2026 and had recently bounced off a 52-week low of $12.40. Even after the jump, it trades well below the level suggested by the reported bid.
Management has described 2026 as an investment year, with returns expected to begin in 2027. Projects include a rollout of waterpark attractions at five sites in North America and an expansion of Toys “R” Us locations. Some investors have questioned whether the new leadership can deliver on those plans, while others see the lower share price as a sign that the company’s brands are undervalued.
What happens next
Several outcomes remain possible. Authentic could submit a formal proposal, which Mattel’s board would need to evaluate against the company’s standalone plan and the interests of shareholders. Other suitors could emerge, particularly given the strength of Mattel’s brand portfolio. The talks could also end without an offer, in which case the stock could give back some of Thursday’s gains.
For now, the week has produced two major pieces of news for one of the world’s best-known toy companies: a new chief executive and the possibility of a new owner. Investors will watch closely for any formal statement from Mattel, a regulatory filing, or further reporting on the price and structure of any proposed deal.
