MAT Stock Eyes Best Week In 16 Months On Mattel Buyout Buzz - Retail Traders See Room Above $20

• Authentic Brands Group has made a preliminary offer of more than $20 per Mattel share, valuing the toy company at over $6 billion. 
• Southeastern Asset Management said in May that Mattel's brands are undervalued and urged the company to explore a sale. 
• Retail traders suggested Mattel could attract offers above $20, with speculation reaching $25 - $30 per share. 

Mattel Inc. (MAT) stock is on track for its strongest week in 16 months as buyout speculation fuels a sharp rebound. Authentic Brands Group proposed paying above $20 per share for the toy giant, valuing it at over $6 billion, while retail investors push for more. 

Mattel stock edged 0.07% lower overnight, ahead of Friday. The stock jumped 18% in regular session, posting its best day in over seven years and reversing losses that followed the unexpected exit of longtime CEO Ynon Kreiz. 

Mattel's Potential $6 Billion Deal

Authentic Brands Group has approached Mattel with a preliminary offer above $20 per share. The proposal would put the toy company's valuation at more than $6 billion, representing nearly a 60% premium to the stock's closing price of $12.66 on Sept.30.

Authentic Brands focuses on buying undervalued brands and helping them grow. Founder Jamie Salter built the company through deals involving brands such as Reebok and Champion. Recently, Authentic agreed to buy Lee from Kontoor Brands for about $1 billion and take Guess private in a $1.4 billion deal

The buyout offer highlights the value of Mattel's collection of globally recognized intellectual property. Barbie, Hot Wheels and Fisher-Price give the company brands that can generate revenue beyond traditional toy sales, including through licensing and entertainment partnerships.

Mattel's Activist Thesis Gets Fresh Attention

The takeover approach also reinforces a long-running argument from activist investors, including Southeastern Asset Management, that Mattel's brand portfolio has not received enough value from public markets. 

In May, Southeastern Asset Management, which owns more than 4% of Mattel, urged the company to consider a sale or other strategic options. It pointed to three possible types of buyers: private equity firms, other toy companies such as Hasbro (HAS), and large media companies that could benefit from Mattel's entertainment properties and added that Mattel could be worth close to $30 per share.

Mattel has attracted takeover interest several times over the years. Hasbro made a formal offer in 2017, but the deal fell apart over price and governance issues. In 2022, private equity firms including Apollo Global Management and L Catterton showed interest. L Catterton later made a $6.5 billion offer in 2024 after the success of the Barbie movie. 

The latest takeover interest comes as Mattel undergoes a leadership change. CEO Ynon Kreiz has left to become co-CEO of Paramount Skydance, while Roger Lynch is set to become Mattel's new CEO. 

What MAT Retail Traders Are Saying 

On Stocktwits, retail sentiment around the stock remained in 'extremely bullish' territory. 

A user said,“$20 bid is just the starting price... let's get a bidding war going.  Do I hear $25???”

Another user said,“when the dust get settled we may see more then 1 buyer. I'm not getting in. Almost did at close but I want to see if there truly are buyers ready to make a deal,” and added,”The feeling is when there is news of a buyout there usually is another offer to hit. If that happens $20 will be cheap and maybe $25 to $30.”

A third user said,“$30 and it's a deal.”

MAT stock has declined 24% year-to-date. 

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