Mattel Shareholder Pushes Company to Explore Sale After Stock Falls 20%

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5.9.2026

Quick Facts

Southeastern Asset Management, which owns over 4% of Mattel worth $170 million, sent an open letter May 7 pushing for a company sale
Mattel shares have fallen more than 20% this year to $15.41, despite analysts setting a $19.80 price target
The activist investor identified three potential buyer groups: private equity firms, toy companies like Hasbro, and media companies

Southeastern Asset Management sent an open letter to Mattel’s board and shareholders on May 7, urging the toy company to explore strategic alternatives including sale, carve-ups, or private equity deals.

The Memphis-based investment firm owns over 4% of Mattel’s common stock, valued at approximately $170 million. Southeastern has been an investor for over eight years.

“We do not want to wait longer for that to be realized,” Southeastern wrote to CEO Ynon Kreiz. “We would prefer you lead the effort to explore strategic alternatives given your industry knowledge and relationships.”

Mattel responded May 8, stating the company maintains ongoing communication with shareholders and that its Board of Directors remains committed to acting in shareholders’ best interests.

Stock Performance Under Pressure

Mattel shares closed at $15.41 Friday morning, up 2% from Thursday but down more than 20% year-to-date. Wall Street analysts maintain a Buy consensus rating with a price target of $19.80.

The company reported net sales of $5.3 billion for 2025, down 1% from the previous year. For the first quarter of 2026, Mattel posted a larger adjusted operating loss of $70 million but exceeded quarterly sales expectations.

Mattel provides 2026 guidance for net sales growth of 3% to 6% in constant currency and adjusted earnings per share of $1.18 to $1.30.

Three Potential Buyer Groups

Southeastern identified private equity buyers as one option, noting “Mattel’s business does not always lend itself well to the quarterly results stability that the public equity market prefers.”

The firm also cited toy company Hasbro as a potential acquirer. “Hasbro has done a better job executing on digital growth than Mattel and therefore has more credibility in this important part of the business,” Southeastern wrote.

Media companies represent the third buyer category. “The public market was not willing to pay for the success of the Barbie movie and might not be willing to pay for a pipeline of other content at Mattel, but a media company would value these assets,” the investor argued.

Jefferies analysts wrote Thursday that they “see PE optionality as credible, media interest as strategically sound, and a Hasbro takeout as unlikely.”

Previous Activist Pressure

Southeastern joins Barington Capital, which became an activist investor in February 2024. Barington highlighted that despite strong brands, Mattel’s share price declined 13.2% over two years, underperforming the S&P 500 by approximately 22.3%.

In July 2024, Mattel’s stock rose over 15% following reports of a buyout offer from L Catterton, reaching $19.49 per share and bringing market capitalization to around $6.5 billion.

Mattel and Hasbro have engaged in acquisition talks for decades. In 1996, Mattel made an offer to buy Hasbro that was rejected. In 2017, Mattel turned down a Hasbro offer.

“We know that Mattel and Hasbro have engaged in on-and-off talks for decades. At the moment, a deal between the two companies is possible in our view,” Southeastern wrote.

The activist investor argues a sale could unlock value near $30 per share, citing “ongoing industry challenges including softening demand for traditional toys and supply-chain constraints.”