Barbie maker Mattel faces investor pressure to consider a sale amid stagnating growth

Mattel is reportedly facing pressure from an investor to consider a sale amid struggling sales and growing buyer interest in the Barbie maker.

American investment firm Ariel Investments, a major shareholder in the toymaker, said that as the struggling business seeks a turnaround, it should consider a sale to the right buyer, according to a letter from Chairman and Co-CEO John Rogers sent to Mattel's board of directors, seen by Reuters and the Wall Street Journal.

"By our estimates, a strategic buyer would pay a significant premium to your current ​share price," Ariel's Rogers said in the letter, saying that the company would be attractive to prospective buyers including entertainment companies and private equity firms.

He added that Mattel's options ranged from a "divestiture of significant assets, a merger and/or an outright sale of the company. Mattel's shares were last trading below the flatline in premarket trading and are down 19% since the beginning of the year.

Mattel's shares since the beginning of the year.

"We appreciate Ariel Investments' longstanding investment in Mattel and their continued engagement," a Mattel spokesperson said in a statement shared with CNBC.

"Our Board of Directors and management team are committed to acting in the best interests of all shareholders and will consider the views expressed in Ariel Investments' letter, as well as the views of Mattel's other shareholders," they added.

The company, which was behind the blockbuster Barbie film featuring Margot Robbie and Ryan Gosling in 2023, has struggled to turn around its business as sales of the Barbie doll and other toys have declined.

Discussions of a sale come after Mattel named its new CEO and chairman, Roger Lynch in September, taking over from predecessor Ynon Kreiz. Kreiz led the company for eight years.

Last week, brand licensing firm Authentic Brands expressed takeover interest in Mattel with a potential offer valued at about $6 billion, according to reports. Mattel's shares rose 20% on the news.