Mattel is getting a new chief executive, as the company behind Barbie has struggled to turn its toy business into a movie business.
Mattel Chief Executive Ynon Kreiz is leaving the toy maker to become the co-CEO of the combined Paramount-Warner Bros. Discovery, Paramount said Wednesday.
Kreiz will lead the company alongside current CEO and Chairman David Ellison. Ellison will head the company’s strategy, creative and technology sectors, while Kreiz will focus on day-to-day operations and integrating the two companies, Paramount said in a statement.
Earlier Wednesday, El Segundo-based Mattel named Condé Nast CEO Roger Lynch as its new top executive.
Lynch has served as a Mattel board member since 2018. He will assume the CEO job in about a month, Mattel said in a statement Wednesday.
Kreiz has led Mattel since 2018 and helped bring it to Hollywood stardom with the 2023 hit film “Barbie.”
“It has been a privilege to lead Mattel,” Kreiz said in a statement. “Mattel is in a position of strength, with a world-class brand portfolio, product offering and global capabilities.”
But Kreiz leaves at a difficult time for Mattel.
In August, the company reported a net loss of $18 million in its fiscal year second quarter, compared to net income of $53 million last year. Sales during the period rose 10% to 1.1 billion.
Mattel had previously said it expected a slow year after its iconic Barbie doll lost some popularity.
The doll and its many variants have been losing momentum since her latest 15 minutes in the spotlight following the 2023 hit movie “Barbie.” This year, Mattel says it will increase its focus on making more digital games and toys tied to movie franchises.
Mattel returned to theaters this summer with “Masters of the Universe,” a movie centered on the action hero He-Man that disappointed at the box office.
“Masters of the Universe” made just $113.8 million in worldwide box office revenue on a production budget of about $170 million.
The weak debut was widely expected given the broader struggles facing superhero movies in the U.S. The film’s challenge was compounded by the fact that “Masters of the Universe” was intended to reintroduce the ‘80s-era action hero He-Man to a new audience — meaning the brawny character had less name recognition to draw on.
The film fared better once it reached Prime Video in late July, topping the streaming charts with about 1.2 billion viewing minutes, according to Nielsen data.
Mattel will hope to find more media success with Lynch, who has previously served as chief executive for the music company Pandora and television service Sling TV. At Condé Nast, he oversaw a portfolio of brands, similar to how Mattel has tried to position its business.
“Throughout his service on the Board, Roger has been an invaluable contributor to shaping the company’s direction in the midst of its expansion into entertainment and digital products,” said Mattel board member Judy Olian in a statement.
Lynch’s appointment came as a result of regular succession planning typical of public companies, said a person close to Mattel who was not authorized to be named.
Mattel determined the profile of its future leader over the course of a year and recently finished the process, though the company was not expecting Kreiz to leave, the person said.
Elevating a board member to CEO is rare, said Charles Elson, founding director of the Weinberg Center for Corporate Governance at the University of Delaware.
“Typically it happens when you have a company in some sort of difficulty,” he said. “You need someone new to come in, but you don’t have the time to execute a search or somebody from the outside would have difficulty getting up to speed.”
Mattel shares closed Wednesday at $12.66, down 0.56%. Its stock price has dropped more than 35% this year.
“This is an important period for Mattel, which is still predominantly a toy company,” said Arpiné Kocharyan, an analyst and managing director at UBS Investment Bank. “Making these trends relevant outside of the toy aisle is paramount for Mattel, and Ynon was at the center of that strategy. The reaction today tells you that the market is skeptical about the go forward.”
While Mattel’s Hot Wheels were hot and its party card game Uno attracted new fans last holiday season, the company’s Fisher-Price line, which makes educational toys for infants, toddlers and preschoolers, has lagged along with Barbie dolls.
Last year, its net sales were about $5.3 billion, down 1% from the year before, according to the company’s unaudited financial statements. Its projection for this year also disappointed investors. The company lost close to $1 billion in market value as investors dumped its shares.
Despite efforts to create buzz around the Barbie brand — including a diabetes Barbie and an autism Barbie — gross billings for Barbie products slid 11% last year, following a similar decline in 2024.
Mattel could get some traction with a deal to develop and market toys tied to the Teenage Mutant Ninja Turtles franchise, which is scheduled to have a new movie next year.
Despite its recent struggles, Lynch said in a statement he is optimistic about the future.
“Mattel has leveraged the power of its world-class brands, attracted exceptional entertainment partners, and strengthened its balance sheet,” he said. “The company is well positioned for its next phase of profitable growth and its exciting new chapter.”
