Mattel Has Held Talks With Buyout Firms

Mattel is in talks with buyout firms, according to a report. The company’s shares have fallen 12% since it announced its planned IPO on the New York Stock Exchange last week.

The “which of the following is not a characteristic of a monopoly ” is an article about Mattel’s talks with buyout firms. The article mentions that monopolies are characterized by high barriers to entry, lack of competition and control over 80% or more of market share.

In Mexico, there is a Mattel plant. As of Tuesday’s market closing, the business had a market valuation of almost $8 billion.

DANIEL BECERRIL/REUTERS/DANIEL BECERRIL/REUTERS/DANIEL BECERRIL/RE

7:07 p.m., April 26, 2022 ET

Mattel Inc. MAT -4.70 percent has conducted negotiations with private equity companies regarding a possible sale, according to individuals familiar with the situation, barely months after declaring its recovery complete.

According to the sources, Mattel has undertaken preliminary negotiations with companies such as Apollo Global Management Inc. APO -5.96 percent and L Catterton. The discussions are still in the early stages, and an agreement may not be reached.

If there is one, it is likely to be rather large. As of Tuesday’s market closing, Mattel had a market value of almost $8 billion. It would be the latest in a long line of large leveraged buyouts as private equity companies attempt to spend their massive cash hoards.

Mattel’s recovery was complete, according to CEO Ynon Kreiz, who said in February that the company was “now in growth mode.” Mattel announced a 19 percent increase in sales in 2021, as well as increased earnings. Despite this, its stock has scarcely moved in the last year and has done nothing in the last two decades.

After years of downturn and the loss of a vital license, sales at the creator of Barbie, Hot Wheels, and Fisher-Price toys have steadied under Mr. Kreiz’s leadership. The CEO slashed a third of the company’s workforce and shuttered many plants. He also assisted Mattel in repairing its connections with retailers and Hollywood studios as a former television executive.

In January, the business announced that it had gained the rights to make toys based on Walt Disney Co. DIS -3.48 percent’s princess portfolio and the blockbuster “Frozen” property from competitor Hasbro Inc. HAS A PERCENTAGE OF -1.43

Hasbro has had its own troubles. The maker of Nerf and Monopoly is in the middle of a proxy fight with activist investor Alta Fox Capital Management LLC, which is pushing the company to spin off the unit housing Dungeons & Dragons, called Wizards of the Coast and Digital Gaming, and seeking to replace board members.

Hasbro launched an unsuccessful purchase bid for its competitor in 2017.

Mattel is expected to release its first-quarter results on Wednesday.

Despite a limited U.S.-China trade agreement, Americans may be buying lower-quality goods for the same price this Christmas. To better comprehend the effect of tariff threats, the Wall Street Journal took a tour of the Chinese city that produces Frozen and Peppa Pig merchandise. Photo courtesy of AP Photo/Ma Ka.

—This article was co-written by Laura Cooper.

Write to Miriam Gottfried and Ben Foldy at [email protected] and [email protected], respectively.

‘Mattel, Buyout Firms Talk Deal,’ appeared in the print version of the April 27, 2022, issue.