Authentic Brands Group in Takeover Talks With Mattel at Over $20 a Share, Valuing Toymaker at $6 Billion or More

Authentic Brands Group has approached Mattel about a potential acquisition, privately discussing an offer that would value the toy company at more than $20 per share, or roughly $6 billion or more, according to the Wall Street Journal. The approach represents a premium of approximately 58% or more over Mattel's Wednesday close of $12.66, which reflected a 4% decline on the day after the company announced its next CEO.

Mattel named Condé Nast CEO Roger Lynch as its incoming chief executive, succeeding Ynon Kreiz, who is departing to become co-CEO of Paramount. The leadership change gave Mattel a market value of about $3.6 billion before the takeover report emerged. Mattel shares were halted on a circuit breaker for more than 20 minutes following the news before resuming trading.

Shares rose sharply Thursday after the report. No formal sale process is under way and there is no guarantee a deal will be reached, according to people familiar with the matter.