We became used to hear the name of Isaac Larian in the news lately around Toys R Us. Now the CEO of MGA Entertainment has a new idea. He wants to merge his company with Mattel. But it doesn’t seem likely at all.
Larian sent an offer to merge MGA with Mattel last month, the Los Angeles Times reports. His proposal featured he himself to be the chairman and CEO of the new combined big company.
Mattel though rejected the offer this week. “The Mattel Board unanimously concluded that this proposal is not in the best interests of Mattel and its shareholders,” wrote Christopher Sinclair, a former Mattel CEO. “Accordingly, the Board asked that I advise you that Mattel is not interested in further discussing this matter with you.”
Sinclair was an executive chairman of Mattel up until this week. The offer of Larian didn’t have a price for Mattel.
MGA and Mattel have a strained relationship to say the least. MGA has the Bratz doll franchise which took away some market from Mattel’s Barbie. In fact, Bratz lead to a court fight between the two companies. A fight that MGA won.
MGA also makes LOL Surprise which was the top selling toy for 2017. It’s also the number 1 toy for 2018 so far, NPD Group analysts say. “MGA made more profits in four quarters than Mattel has made in four years,” Larian boasted to The Times.
He also says he has been working on the proposal since 2015. Larian thinks Mattel, which is struggling to find new footing and loosing profits, will continue to experience problems.
And while Mattel rejected his offer, Larian is not giving up. He says he will go talk to Mattel’s shareholders now in order to “save” the company. “I hope the merger will save this American icon before, like, Toys R Us, it is too late,” Larian said.
Before that, he’s going to Japan to debut the LOL Surprise toys there, too. He’s also adamant, that his merge idea is not a stunt and he’s very serious about it.
