On June 8, 2023, the Mattel Inc. logo was proudly displayed outside the company’s headquarters in El Segundo, California. Known for iconic products such as Barbie and Hot Wheels, Mattel has been a staple in the toy industry for years.
Recently, activist investor Barington Capital has been urging Mattel to consider selling off its American Girl and Fisher-Price brands, citing underperformance within these divisions. This news has caused a stir in the market, with Mattel shares gaining 4% in Friday trading following the release of the letter sent to Mattel on Thursday, as reported by The Wall Street Journal.
Despite the popularity of American Girl and Fisher-Price, Barington believes that these brands are not performing up to their potential. In a letter to CEO Ynon Kreiz, Barington’s James Mitarotonda highlighted the decline in Fisher-Price’s revenue from $1.9 billion in 2015 to less than $1 billion.
It’s clear that Barington’s push for change has caught the attention of investors and industry insiders alike. The future of Mattel and its iconic brands hangs in the balance as the company considers its next move.
2024-02-02 16:01:40
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