The asset manager, holding a 4 percent stake, suggests a potential sale to rival Hasbro or a private buyout.
Mattel recently reported an adjusted operating loss of 70 million dollars, despite exceeding quarterly sales expectations earlier this month.
Southeastern argues that a merger would create a stronger global player by combining the industry’s two most iconic portfolios.
The investor believes Hasbro possesses superior digital growth credibility, offering valuable synergies for Mattel’s long-term business evolution.
Alternatively, the letter suggests that large media companies might better value Mattel’s extensive intellectual property assets.
Mattel remains focused on its current IP-forward strategy and continues to engage with its long-term shareholders regarding performance.
The board maintains a regular review of opportunities to enhance shareholder value within the competitive toy market landscape.
Both companies declined to provide additional comments on the specifics of the potential acquisition or private transition.
