Buyout Barbie? Mattel Stock Jumps on Reports of Takeover Interest.

Toy manufacturer and entertainment specialist Mattel (NASDAQ: MAT ) generated business headlines earlier today on reports of a takeover interest . According to Reuters , private equity firm L Catterton — which is backed by luxury goods brand LVMH (OTCMKTS: LVMUY ) — offered to buy out the toy company. Mattel stock likely jumped as prior efforts to turn the ship around have not succeeded.

Per the report, the news of the asset management firm’s interest in acquiring the entertainment specialist may prompt competing bids. The spotlight will almost certainly be on sector rival Hasbro (NASDAQ: HAS ), which knows about L Catterton’s bid. Currently, management is in discussion about whether it too should submit an offer.

For context, Hasbro and Mattel have held merger talks. However, the negotiations have ultimately not been fruitful. Because the proposed buyout may be the only way to extract value out of the toy brand, Mattel stock jumped 20% earlier on Monday.

That move gave the company a market capitalization of $6.5 billion. Activist Pressure Puts the Squeeze on Mattel Stock Pr essure from high-level stakeholders has added to the overall uncertainty over Mattel stock.

In particular, activist investor Barington Capital called on the toy manufacturer to implement much-needed changes earlier in February. Among the proposals included selling Mattel’s Fisher-Price and American Girl brands and separating the roles of CEO and chairman. Another pressing concern for Mattel stoc.