Updated version 6 - Mattel CEO Kreiz to leave, will join Paramount Skydance as Co-CEO

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Neil J Kanatt

Reuters, September 30 - Ynon Kreiz, the longtime chief executive of Mattel (MAT.O), who oversaw the transformation of the toy maker into a broader entertainment company, is stepping down. Following the completion of Mattel’s $110 billion deal with Warner Bros., he will join Paramount Skydance as co-CEO.

This leadership change comes right before the critical holiday sales season, as Mattel, despite efforts to build on the success of 2023’s box office hit “Barbie,” continues to face tariff-related cost pressures and activist investor challenges due to persistent declines in shareholder value.

On Wednesday, Mattel announced that board member Roger Lynch, who previously headed Condé Nast—the parent company of Vogue and The New Yorker—will take the helm from Kreiz.

Paramount said in a separate statement that Kreiz will become co-CEO and join its board starting October 5.

Kreiz championed the adaptation of Mattel’s intellectual property into films, TV series, and digital games, resulting in global blockbusters like “Barbie” and boosting demand for related merchandise.

However, during Kreiz’s tenure as CEO, Mattel’s stock price increased by just 5%, significantly underperforming the nearly 200% gain of the S&P 500 index .SPX over the same period.

UBS analysts wrote in a report: “Given the tightening macro environment, rising interest rates, and potential heavy weighting of Q4 performance, this announcement adds another layer of uncertainty to already sensitive investor sentiment.”

Earlier this year, investor Southeastern Asset Management urged Mattel to explore various options (link), including a sale or merger with rival Hasbro HAS.O.

Lynch has served on Mattel’s board since 2018 and is set to assume the CEO role on November 2. In the interim, Mike Perlis, a board director at Condé Nast—where Lynch was CEO for about seven years—has been appointed as interim chief executive.

Set to lead his sixth company, Lynch is well-known for his leadership roles at Condé Nast, Pandora, and Sling TV. He brings expertise in media, satellites, and digital sectors but lacks direct experience in the toy industry.

The Toy Book editor-in-chief James Zahn said, “Roger’s appointment comes as the lines between consumer products and media blur more than ever, so having an experienced media operator at the helm makes sense.”

Last month, Mattel posted better-than-expected (link) second-quarter revenue and reaffirmed its annual targets, but profits fell short of market expectations due to tariff-related costs and investments to boost sales.

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