1218 ET - Jefferies analysts say they agree with some points in a recent letter from Mattel shareholder Southeastern Asset Management. The activist investor's argument that Mattel would be better off if owned by a private equity firm is credible, the analysts say, given the seasonality of Mattel's earnings profile limits its appeal in public markets and could make it a strong go-private candidate. Mattel's discounted valuation and positive free cash flow may make it an attractive target to private equity sponsors, they say. The analysts also agree with Southeastern that large media companies would value Mattel's intellectual property. "We believe this option is the most strategically sound," they say. However, the timing of such a deal would be uncertain because media companies' balance sheets remain constrained, and buyers may prefer licensing Mattel's IP over outright acquisition, they say. (kelly.cloonan@wsj.com)

(END) Dow Jones Newswires

May 08, 2026 12:18 ET (16:18 GMT)

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