Mattel taps Condé Nast's Lynch as CEO Kreiz, who led brand revival, departs

Sept 30 — Mattel's longtime CEO Ynon Kreiz, who led the strategy to transform the struggling ​toymaker into an entertainment company, is leaving, handing over the reins to board member and CEO of media company Condé Nast, Roger Lynch.

The leadership change comes ‌ahead of the crucial holiday season and at a time when Mattel is grappling with tariff-related costs and activist ⁠investor pressure due to a decline in ​shareholder value despite efforts to build on ⁠the blockbuster success of the 2023 "Barbie" movie.

Kreiz has led Mattel since 2018 and is leaving ‌for a senior leadership ‌role in another public company, Mattel said on Wednesday.

His efforts to expand into ⁠films, television and digital gaming by leveraging Mattel's ⁠intellectual property culminated in the global box-office success of "Barbie", boosting demand for the toymaker's merchandise.

Yet Mattel's shares failed to keep pace with the broader market during Kreiz's tenure, rising just about 5% since he became CEO, compared with a nearly 200% surge in the S&P 500 during that period.

Shares of the Barbie doll and Hot Wheels ‌maker were down about 3% in early trading.

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, who has served on Mattel's board since 2018, is expected to assume the top role by Nov. 2. Meanwhile, Condé Nast, where Lynch has been CEO for about seven years, named board member Mike Perlis as interim CEO.

"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," ‌James Zahn, Editor-in-Chief ⁠at The Toy Book, said.

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.

"Roger is a visionary leader with a track record of growing global companies at the forefront ‌of changing industry and consumer ​trends," Mattel board member Judy Olian said.

Kreiz did not ‌respond to a Reuters ⁠request for comment ​on his next role.

(Reporting by Neil J Kanatt in Bengaluru; Editing by Tasim Zahid, Sriraj Kalluvila and ​Arun Koyyur)

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