In a Tuesday interview with CNBC’s Jim Cramer, Mattel CEO Ynon Kreiz didn’t address a reported takeover offer, and instead said he’s positive about the Barbie maker’s success as its own company.
“We don’t comment on speculation,” Kreiz said. “What I can say is that we’re very confident in Mattel’s strategy and our ability to create long-term shareholder value as a standalone company.”
According to a Reuters report, private equity firm L Catterton, which is backed by luxury goods giant LVMH, has approached Mattel with a deal. Reuters also said that L Catterton’s offer has made Hasbro, a rival toy company, consider whether it should also put in a bid. The two toy makers have had unsuccessful merger discussions in previous years.
Despite the monster success of the Barbie movie last summer, Mattel’s share price has declined over the past several months. Mattel’s Tuesday report beat analysts’ earnings expectations, but revenue came in slightly lower than expected. Management said gross billings fell 6% compared to last year’s second quarter, primarily because of declines in Barbie products.
But Kreiz said he was confident in the Barbie brand, saying Mattel’s share price doesn’t “reflect the success we’ve had to date” or “future potential.” He stressed the cultural relevance of the franchise and added that it is strengthening its position as a leader in the dolls category. He also said Mattel has 16 films in various stages of development and preproduction.
“Our brands are thriving. We are gaining share in the toy business. We are winning major licenses and are having great momentum in our entertainment strategy highlighted by the Barbie movie as one obvious showcase with so much more in the works,” Kreiz said. “So we are well-positioned to build on this multi-year trajectory, and continue to execute our strategy, and expect the share price to reflect this over time.”
