Mattel appoints Ynon Kreiz CEO, replacing Margo Georgiadis

Marco Green
April 20, 2018

Mattel Inc. says that its CEO Margo Georgiadis is stepping down to pursue a new opportunity in the tech sector.

Georgiadis tried to stem the bleeding over her 14-month tenure by implementing management changes, suspending dividends and announcing a plan to cut $650 million in costs.

"Ynon has tremendous expertise across areas critical to our strategy, including digital, media and entertainment, and we have already benefitted from that experience and his compelling vision for the company since he became a director", said executive chairman Christopher Sinclair in a statement released after the stock market closed.

The El Segundo-based company's shares were down 3 percent, trading at $13.45 following the announcement on Thursday. Still, the company's income declined from $1.05 billion in 2016 to $318 billion in 2017 and revenue fell from $5.4 billion to $4.8 billion over the same period. That could be a possible sign that investors believe Kreiz may be amenable to a possible merger with Mattel rival Hasbro.

The shift comes as Mattel struggles to turn around a lengthy slump that has seen it overtaken in sales by Hasbro. The bankruptcy and subsequent liquidation of Toys "R" Us, which was the largest toy retailer and a top channel for Mattel sales, was another blow to the company.

Hasbro, on the other hand, has only fallen about 12% in the past year. It is still benefiting from the fact that it now has most of the major toy licenses tied to Disney franchises such as the Princess line of characters, Frozen, Star Wars and Marvel comics.

Other reports by Click Lancashire

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