By Kelly Cloonan

A Mattel shareholder is calling for a sale of the toy company, arguing it would be better off if owned by a private equity firm, competitor or large media company.

Southeastern Asset Management, which has a stake of more than 4% in Mattel, said Thursday it believes the company is now positioned to explore strategic alternatives after stabilizing its business. However, the investment management firm said it worries that Mattel Chief Executive Ynon Kreiz's compensation package incentivizes waiting for the company's stock price to surpass $30 before acting on a sale.

"We see a value per share today approaching $30, but we do not want to wait longer for that to be realized," Southeastern said in a letter to Kreiz. "We would prefer you lead the effort to explore strategic alternatives given your industry knowledge and relationships."

Southeastern said it believes there are at least three groups of buyers that would be better owners to realize Mattel's long-term value.

A sale to a private equity firm would allow Mattel to support a larger amount of leverage as it would not have to worry about quarterly results and guidance, while combining with another toy company could create a stronger industry player, Southeastern said. A large media company could also be a possible buyer, given Mattel has valuable intellectual property.

Mattel did not immediately respond to a request for comment.

The company's shares are down 24% this year and about 14% in the past 12 months, both through the market close.

Southeastern said the categories of buyers it proposed are not mutually exclusive.

"A toy company might not want to make movies or a media company might not want to make toys, all while certain private equity buyers might only want certain parts of Mattel," Southeastern said. "There are creative solutions to maximize value for shareholders if Mattel actively explores the landscape."

Write to Kelly Cloonan at kelly.cloonan@wsj.com

(END) Dow Jones Newswires

May 07, 2026 16:49 ET (20:49 GMT)

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