Sources: Southeastern Asset Management Eyes Proxy Fight at Mattel to Push for Sale
Semafor reports that major shareholder Southeastern Asset Management is considering a proxy fight at Mattel, aiming to nominate new directors and pressure the toy maker into selling itself amid declining sales and leadership changes.
According to an exclusive report by Semafor, Southeastern Asset Management, a major shareholder in American toy giant Mattel, is preparing to mount a proxy fight aimed at pushing the company toward a sale. People familiar with the matter revealed that the activist investor has been considering nominating new board members as part of this strategy.
This move follows months of double-digit sales declines in key segments like Fisher-Price and mounting profit-margin pressures. The situation became more acute after CEO Ynon Kreiz left to join Skydance Media. Mattel shares dropped 5% upon the announcement of his replacement, former Condé Nast CEO Roger Lynch, though they rebounded after The Wall Street Journal reported that Authentic Brands Group had drawn takeover interest. Mattel stock is down 15% year-to-date.
The sources cautioned that Southeastern’s plans could change and no final decision has been made. While the activist is unlikely to secure full control of Mattel’s board, a proxy fight would serve as a referendum on the company's direction. Under Mattel’s bylaws, investors can typically only nominate two directors unless specific circumstances apply.
Separately, Ariel Investments, another large Mattel shareholder, has told other investors it believes change is needed at the company. In a recent CNBC appearance, Ariel founder John Rogers stated the company should sell itself, an unusual posture for a famously management-friendly investor. Mattel declined to comment further beyond stating it engages with all shareholders. Neither Southeastern nor Ariel responded to requests for comment.