Mattel jumps 25% on Authentic Brands takeover interest, but trades 21% below the reported $20 a share
The Wall Street Journal says Authentic Brands has discussed a bid above $20 a share. Mattel's own filings put that at about $5.7 billion of equity and roughly $7.5 billion including net debt.
Mattel shares rose 25% on Thursday after The Wall Street Journal reported that Authentic Brands Group, the brand-licensing company, has approached the Barbie and Hot Wheels maker about a takeover. According to the Journal's report, as relayed by Reuters, the two sides have privately discussed an offer that could value Mattel at more than $20 a share, or $6 billion or more. Neither company commented to Reuters.
At 2:54 p.m. New York time, Mattel traded at $15.83, up $3.17 from Wednesday's $12.66 close, on volume of about 17.4 million shares, more than four times its average, according to Nasdaq data. It had touched $17.22 earlier in the session. Seeking Alpha also reported the move.
What $20 a share actually buys
Mattel's latest quarterly report, filed in August, lists 285.7 million shares outstanding as of July 24, according to its SEC filings. At $20 a share, that is about $5.7 billion of equity. A $6 billion equity value would work out to roughly $21 a share.
A buyer also takes on the debt. At June 30, Mattel had $2.33 billion of long-term debt and $524 million of cash, or about $1.81 billion net. Add that and a $20 offer comes to an enterprise value of about $7.5 billion, or roughly 1.4 times the $5.35 billion of revenue Mattel reported for 2025.
| Mattel at a glance | Figure |
|---|---|
| Wednesday close | $12.66 |
| Thursday, 2:54 p.m. | $15.83 (+25%) |
| Reported bid level | more than $20 |
| 52-week high | $22.48 |
| Shares outstanding (July 24) | 285.7 million |
| 2025 revenue / net income | $5.35 billion / $398 million |
| Q2 2026 revenue / net result | $1.13 billion / $18 million loss |
The market is not pricing a deal
Even after the jump, the stock sits about $4.17, or 21%, below a $20 offer. Put the other way, $20 would be 26% above Thursday's price. A gap that wide means traders are treating the report as an approach, not an agreed transaction. No terms have been announced, and Mattel has not said whether it would engage.
The other figure the headline leaves out: a $20 offer would still be below Mattel's own 52-week high of $22.48. Shareholders who bought near that level would be selling at a loss.
Why now
The approach comes a day after Mattel said chief executive Ynon Kreiz would leave to become co-CEO of the combined Paramount and Warner Bros. Discovery, with Condé Nast's Roger Lynch named to replace him, which we covered on Wednesday. The shares fell about 4% on that news. A leadership change and a stock near its 52-week low is the setting in which outside bids tend to appear.
The filings also show Mattel has been shrinking its share count. It had 322.9 million shares out in April 2025, so about 11.5% of the company has been bought back in roughly 15 months. Every share retired raises the per-share value of any fixed-dollar offer, which is part of why a "$6 billion" headline maps to more than $20 a share.
What traders are watching next: whether Mattel confirms talks, whether a second bidder appears, and whether any offer clears the $22.48 high.
Sources: The Wall Street Journal; Reuters via Investing.com; Seeking Alpha; Nasdaq quote data; Mattel filings via SEC EDGAR. Valuation figures are Chronicle calculations. This is market information, not investment advice.
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