Barbie-maker Mattel has best day in 7.5 years amid Authentic Brands takeover interest

Mattel, the mid-cap maker of Barbie dolls and Hot Wheels cars, posted its biggest percentage gain in seven and a half years on Thursday. Authentic Brands Group, the owner of Reebok, Forever 21, and Nautica, is interested in acquiring the company, the Wall Street Journal reported, citing people familiar with the matter.

Mattel rose 19% on the Nasdaq on Thursday to $15.04 per share. It was the biggest percentage gain in more than seven and a half years, while the closing price was the highest since March 13.

The rally began after the Wall Street Journal, citing sources, reported that Authentic Brands was interested in acquiring Mattel. Authentic has made an approach and is privately discussing an offer that could value the mid cap at more than $20 per share, or around $6 billion or more, some of the people told the newspaper. Even after Thursday’s rally, that would represent a 33% premium.

The WSJ’s sources cautioned that there was no guarantee Mattel would be receptive to Authentic’s approach or that the two sides would reach an agreement. Another bidder for Mattel could also emerge, they cautioned.

Mattel’s CEO transition could also complicate a deal. Condé Nast CEO Roger Lynch will assume the role no later than November 2, the company announced on Wednesday. Lynch is trying to determine his strategy for Mattel, which has been “struggling to grow” beyond toys and into entertainment, the WSJ writes. On Thursday, the company announced plans to open the first of five Mattel Wonder water parks in late 2027. It will bring together the company’s brands, including Barbie, Hot Wheels, and Fisher-Price.

Mattel shares have lost almost a quarter of their value year to date. That puts them on pace for their worst annual performance since 2018, when the stock fell 35%, Barron’s writes.

The lower share price has attracted the attention of activist investors. In May, Southeastern Asset Management, which at the time owned a 4% stake in the toy maker, called on Mattel to consider a sale or other alternatives, arguing that both its brands and its stock were undervalued. Southeastern estimated the stock’s fair value at $30 per share, around 1.5 times the price that Authentic is offering, according to the WSJ’s sources.

Mattel, however, is “very confident about continued growth” and expects to achieve its guidance, outgoing CEO Ynon Kreiz said Tuesday at the Goldman Sachs Consumer and Retail Conference, according to Barron’s. For 2026, the company forecast net sales growth of 3-6% and earnings per share of $1.27-1.39. The EPS forecast is below the analyst consensus of $1.59.

Wall Street broadly shares Kreiz’s optimism: Mattel stock has 12 “buy” calls from analysts, versus five “hold” and two “sell” ratings. The average target price is $17.75 per share, implying 18% upside from the last close.