By Neil J Kanatt
Sept 30 (Reuters) – Paramount Skydance named Mattel CEO Ynon Kreiz, who led the toymaker’s transformation into a broader entertainment company, as the co-CEO of the combined firm following its $110 billion Warner Bros deal.
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.
Mattel’s board member Roger Lynch, who was the head of Vogue and the New Yorker owner Condé Nast, will take over the helm from Kreiz, the company said in a separate statement on Wednesday.
Kreiz will be starting his new position at Paramount as the co-CEO effective October 5 and will also join its board, Paramount said.
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.
“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, additional reporting by Angela Christy M in Bengaluru; Editing by Sriraj Kalluvila, Arun Koyyur, Anil D’Silva and Maju Samuel)
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