From CNBC:

Activist investor Barington Capital is urging Mattel to consider selling off its American Girl and Fisher-Price brands due to underperformance within the divisions. Mattel’s shares went up around 3% following the letter sent by Barington. The toymaker’s shares trade at the same level as 20 years ago. Fisher-Price’s revenue has fallen from $1.9 billion in 2015 to less than one billion by 2023.

Barington Capital is calling for Mattel to explore strategic alternatives for Fisher-Price and American Girl, citing continued erosion in revenue and market share. The investor believes that these brands are detracting from the success of Mattel’s other segments and hurting shareholder value. The activist investor also highlighted “excessive” stock-based compensation and urged Mattel to pause continued M&A efforts in favor of a $2 billion share repurchase operation.

Barington Capital has suggested that Mattel should pause continued M&A efforts and focus on a $2 billion share repurchase operation. The investor also called for Michael Dolan, the former CEO of Bacardi, IMG, and Young & Rubicam, to be elevated to the position of chair, a position currently held by CEO Ynon Kreiz. Additionally, the investor pointed out “excessive” stock-based compensation and urged Mattel to address the issue.



Read more: Barington pushes Mattel to fix or sell off American Girl, Fisher-Price