A toy mogul is considering merging with Mattel, indifferent

NEW YORK: MGA Entertainment Inc. wants to merge with rival Mattel Inc., even if it means becoming hostile.

Isaac Larian, President and CEO of MGA, said he was "considering other solutions" to merge Bratz doll creator and Barbie doll maker after the rejection of his unsolicited offers.

MGA, whose properties also include Little Tikes and L.O.L. Surprise!, The latest to date contacted Mattel about his interest in May, citing the company's rising debt and falling stock price to give impetus to an agreement. Mattel rejected the proposal – which did not include any kind of price – according to an email exchange reviewed by Bloomberg News. Mattel declined to comment on the exchange.

"I try to do things peacefully and very confidentially. You saw what the reaction was. So there are other options for taking over a business on behalf of its shareholders, and we are looking at different ways, "Larian said. , who said he was a shareholder of Mattel but declined to specify his involvement. He also refused to specify the next steps of his candidacy. "Frankly, I'm looking for other options because I do not think the board is trying to do what's right for Mattel's shareholders."

The toy mogul who took Barbie gets ready for the Christmas season

Its opening comes as Mattel tries to set up a turnaround, and early signs suggest he is gaining momentum. Although he has faced huge hurdles in recent years, including the loss of his major client, Toys "R" Us Inc., Mattel has made progress after appointing his fourth CEO in four years.

Ynon Kreiz took the lead last spring, quickly launching a film division to turn the toy maker into a Hollywood force like rivals Hasbro Inc. and Lego A / S. First quarter results exceeded estimates even if analysts on the sellers' side have worried about the fact that it's still too early to blow up the champagne.

Mattel shares climbed 12% after the close of Tuesday's regular trading in New York. L.A. Times reported on the merger offer earlier.

MGA is interested in merging with rival Mattel for some time, despite their complicated history. According to Larian, who would like to run Mattel if he were successful, he contacted the company in 2015 and again in 2018 to express his interest in a potential merger and was shot.