NEW YORK: MGA Entertainment Inc. wants to merge with rival Mattel Inc., even if it means hostile.
Isaac Larian, chief executive of the MGA, said he "looks at other options" to merge the creator of Bratz dolls with the Barbie doll manufacturer after his previous unwanted offers were rejected.
MGA, whose features also include Little Tikes and LOL Surprise! Last contacted by Mattel about his interest in May, quoting the company's rising debt and tumbling stock price as a driving force for a deal. Mattel rejected the proposal – which did not include any kind of price – according to an email exchange reviewed by Bloomberg News. Mattel refused to comment on the exchange.
"I try to do things peacefully, very confidentially and you saw what the answer was, so there are other options to take over a company for the sake of the shareholders, and we look differently," says Larian, who said that he is a shareholder in Mattel but refused to specify his contribution. He also refused to delve into what his next step is in his command. "I look at other options, frankly, because I do not think the board looks to do what is right for shareholders in Mattel."
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His overtime comes as Mattel tries to make a turn, and there are early signs it goes fast. Although it has faced extensive barriers in recent years, including the loss of large customer toys Toys "R" Us Inc., Mattel has made progress after naming its fourth CEO in four years.
Ynon Kreiz took the helm last spring, quickly initiating a film split in an attempt to transform toymaker into a Hollywood force rivaling Hasbro Inc. and Lego A / S. Earnings for the first quarter increased, but sales analysts expressed concern because it stays too early to pop the champagne.
Mattel's shares increased as much as 12% after the closing of regular trading Tuesday in New York. LA. Times reported on the merger offer earlier.
MGA has been interested in merging with rival Mattel for some time, despite their complicated history. According to Larian, who would like to drive Mattel if his bid was successful, he contacted the company in 2015 and again in 2018 about his interest in a potential merger and shot down.