Activist Investor Wants Barbie Maker Mattel To Part Ways With Fisher-Price, American Girl, Seeks Organizational Changes
Portfolio Pulse from Vandana Singh
Activist investor Barington Capital has acquired a stake in Mattel (NASDAQ:MAT) and is pushing for significant organizational changes to boost the company's underperforming stock. Barington's proposals include exploring strategic alternatives for Fisher-Price and American Girl, addressing stock-based compensation, and initiating a $2 billion share buyback plan. The investor believes these actions could potentially double Mattel's share price in three years. Mattel is reviewing Barington's proposals and has been exploring ways to leverage its intellectual property, including film projects.
February 02, 2024 | 6:02 pm
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POSITIVE IMPACT
Barington Capital's stake acquisition and proposed changes for Mattel, including strategic reviews and a share buyback plan, aim to significantly improve stock performance.
Barington Capital's involvement and proposed strategic changes are likely to create positive investor sentiment, potentially leading to an increase in Mattel's stock price in the short term. The focus on addressing underperforming segments and improving shareholder value through measures like a $2 billion share buyback plan could be seen as strong moves to enhance the company's financial health and market position.
CONFIDENCE 80
IMPORTANCE 90
RELEVANCE 100