Business Wire·May 7, 2026, 4:05 PM ET

Southeastern Asset Management Issues Open Letter Calling on Mattel to Explore Strategic Alternatives

Southeastern Asset Management Inc. issued an open letter to Mattel Inc. on May 7, 2026, urging the company to explore strategic alternatives.
Southeastern holds over 4% of Mattel's common stock & has engaged with CEO Ynon Kreiz since mid-March 2026.
The letter suggests three potential buyer categories for Mattel: private equity firms, other toy companies, & large media entities.
Southeastern notes Mattel's business model suits private ownership due to its cash-generation capabilities & ability to support higher leverage without quarterly pressure.
A merger with Hasbro is identified as a logical strategic option, citing potential synergies & Hasbro's stronger digital growth execution.
Media companies are highlighted as interested buyers for Mattel's valuable intellectual property, such as the Barbie franchise, which the public market currently undervalues.
Southeastern warns against selling only Fisher-Price, stating it would not be sufficient to realize the company's full potential.
The letter criticizes current executive compensation for incentivizing a wait for a stock price above $30 instead of acting on the current estimated value of approximately $30 per share.
Southeastern requests that Mattel's board lead the effort to explore these strategic options due to their industry knowledge & relationships.
The communication explicitly states it is not a solicitation of proxy authority & requests that proxy cards not be sent to Southeastern.