Mattel investor asks CEO to consider go-private or sale

May 8 (Reuters) - Mattel investor Southeastern ‌Asset Management has ​called ​on CEO Ynon Kreiz to explore strategic options for the toy maker to be taken private or bought out by rival Hasbro.

The global ‌asset manager holds about 4%, or $170 million of Mattel's common stock, ⁠and has been an investor in the company for more than eight years, it said in ‌an open letter to Kreiz ‌on Thursday.

A deal between Mattel and rival Hasbro was possible at this moment, Southeastern said, as the two companies have been engaged in on-and-off talks for ​decades.

In the face of weak demand for traditional toys and supply-chain bottlenecks, Mattel has been growing its IP-centered family entertainment business through films like "Masters of the ⁠Universe," following the success of the "Barbie" movie.

The company last week posted a bigger adjusted operating loss of $70 million ​from $8 million a year ago for the three months through March. However, it topped quarterly sales expectations.

"Hasbro has done a better ​job executing on digital growth than Mattel and ‌therefore has more credibility in this important part of the business," the letter said.

"We believe synergies between the two companies would ⁠be material, creating a stronger player in a global industry."

Mattel said it was focused on executing its plans around the IP-forward strategy. Hasbro did not immediately respond to a Reuters request ⁠for comment.

"The board regularly reviews the company's strategy, performance, and opportunities to enhance long-term value, ​and will continue to consider the views expressed in Southeastern's letter," Mattel said in a filing.

Southeastern also said Mattel's business could be better suited to being privately held, while a third ‌option could be large media companies that would value Mattel's IP assets better than the public market.

Interest from a media company ‌was the most strategically sound option, while a Hasbro takeout was unlikely, Jefferies analysts said ⁠in a note.

"No immediate change ‌is expected, (investor) activism may cap ​downside and revive optionality (in the stock)."

Mattel's shares were up 2% on Friday.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Arun Koyyur and ‌Diti Pujara)

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