By Neil J Kanatt
Sept 30 (Reuters) – Mattel’s longtime CEO Ynon Kreiz, who led the toymaker’s transformation into a broader entertainment company, is stepping down and will be succeeded by board member Roger Lynch, head of Vogue and New Yorker owner Condé Nast.
The change comes ahead of the crucial holiday season, with Mattel facing tariff-related costs and activist investor pressure over its declining shareholder value despite efforts to build on the success of 2023’s blockbuster “Barbie” movie.
Kreiz, who has led Mattel since 2018, is heading to Paramount Skydance in a senior role following its $110 billion Warner Bros deal, Bloomberg News reported, citing a person familiar with the matter.
Mattel and Paramount declined to comment, while Kreiz did not respond to a request for comment.
Kreiz’s push to turn Mattel’s intellectual property into films, television shows and digital games delivered the global box-office hit “Barbie” and boosted demand for its merchandise.
Yet Mattel shares have risen just 5% during Kreiz’s tenure as CEO, sharply underperforming a nearly 200% gain in the S&P 500 over the same period.
Shares of the Barbie doll and Hot Wheels maker fell 4% in afternoon trading.
“This announcement adds a layer of uncertainty to an already skittish investor sentiment given a tougher macro backdrop, rising rates, and likely a more Q4-weighted outcome,” UBS analysts wrote in a note.
Earlier this year, investor Southeastern Asset Management urged Mattel to explore options, including a sale of the company or a combination with rival Hasbro.
Lynch has served on Mattel’s board since 2018 and is expected to assume the top role by November 2. Meanwhile, Condé Nast, where Lynch has been CEO for about seven years, named board member Mike Perlis as interim CEO.
Lynch, who will be taking the helm of a sixth company, is best known for leading Condé Nast, Pandora and Sling TV, bringing media, satellite and digital expertise but little direct experience in the toy industry.
“Roger’s appointment comes at a time when the lines between consumer products and media are more blurred than ever, so it makes sense to place an experienced media operator at the helm,” said James Zahn, editor-in-chief at The Toy Book.
Last month, Mattel topped second-quarter revenue estimates and reaffirmed its annual targets, but tariff-related costs and investments to boost sales resulted in profit missing market expectations.
(Reporting by Neil J Kanatt in Bengaluru; Editing by Sriraj Kalluvila, Arun Koyyur and Anil D’Silva)
Comments