Mattel has named Roger Lynch as its new chief executive and chairman, effective October 2 as chairman and November 2 as CEO, succeeding Ynon Kreiz, who will leave the company after more than eight years leading the toymaker.
Lynch, who has served on Mattel’s board since 2018, will transition from his role as CEO of Condé Nast, a position he has held since 2019. Mike Perlis, Condé Nast’s lead independent director, will serve as interim CEO during the search for Lynch’s successor. Lynch will remain on Condé Nast’s board after his departure.
Kreiz, who led Mattel through its expansion into entertainment—including the 2023 blockbuster Barbie—will take a senior leadership role at another public company. The film, which became the highest-grossing domestic release of 2023, marked a turning point for Mattel’s strategy of adapting its iconic brands into movies.
Mattel’s recent challenges and strategic pivot
Mattel has faced declining sales in recent quarters, with the company reporting weak holiday performance in February. The company cited reduced momentum for Barbie, which had previously benefited from the 2023 film’s success. In response, Mattel is increasing its focus on digital games and toys tied to movie franchises, including a push into mobile gaming through its Mattel163 Mobile Games Studio, which it acquired full control of earlier this year.
The company’s latest theatrical release, Masters of the Universe, opened in June 2024 to a $29.3 million domestic debut, a figure described as weak by industry analysts. The film aimed to reintroduce the He-Man franchise to a new generation but faced broader challenges in the superhero movie market, compounding its struggles.
Leadership transitions and industry context
Lynch’s appointment comes as Mattel seeks to diversify its revenue streams beyond traditional toy sales. Before Condé Nast, Lynch served as CEO of Sling TV and Pandora, bringing experience in media and entertainment to his new role. In his exit memo to Condé Nast staff, Lynch highlighted the company’s growth under his leadership, including a 155% increase in digital subscriptions and a 170% rise in commerce revenue since 2020.
Kreiz, in a statement, reflected on his tenure, noting Mattel’s strengthened brand portfolio and global capabilities. He emphasized the company’s world-class product offerings, including Hot Wheels, which remains a key asset.
Mattel’s stock has declined 21% over the past 12 months, reflecting investor concerns about its strategic direction. The company’s shift toward entertainment and digital media represents a significant departure from its traditional toy manufacturing roots.
Background: Mattel’s entertainment ambitions
Mattel’s push into entertainment began in earnest under Kreiz, who prioritized adapting its brands into films and digital content. The success of Barbie demonstrated the potential of this strategy, though subsequent releases like Masters of the Universe have struggled to replicate its impact. The company’s Hot Wheels brand remains a bright spot, with strong sales and brand recognition.
Lynch’s appointment signals a continuation of this strategy, though his background in media and digital platforms may accelerate Mattel’s efforts to compete with rivals like Hasbro, which has also expanded into entertainment and gaming.
Financial and market implications
Analysts will closely monitor Mattel’s performance under Lynch, particularly as the company navigates declining Barbie sales and uncertain box office returns. The company’s digital gaming initiatives and franchise-driven toy lines will be critical to its long-term growth.
Mattel’s board expressed confidence in Lynch’s ability to lead the company, citing his board experience since 2018 and his track record in media and entertainment leadership roles.
Key dates and transitions
- October 2, 2024: Lynch assumes role as Mattel chairman.
- November 2, 2024: Lynch officially becomes CEO.
- Kreiz’s departure: Effective immediately, with a transition to a senior leadership role at another public company.
- Condé Nast interim leadership: Mike Perlis named interim CEO.