Mattel CEO poached by Paramount, stock sinks

Longtime Mattel ( MAT ) CEO Ynon Kreiz will step down as CEO, effective Oct. 2, the toy company said on Wednesday. He will be replaced by board member Roger Lynch , who has led Condé Nast since 2019.

Kreiz is leaving to take a senior role at David Ellison's Paramount Skydance ( PSKY ), according to Bloomberg.

Incoming CEO Lynch led growth in Condé Nast's subscriptions, video, live experiences, commerce, and strategic partnerships, according to Mattel. Before that, he served as CEO of music streaming service Pandora and CEO of Sling TV.

It's the end of an era for Mattel. Kreiz has led the company since 2018. He is credited with reviving Barbie and expanding the company's studios and theatrical releases — most notably with the 2023 blockbuster hit "Barbie."

"It was never about just trying to sell more toys," Kreiz told Yahoo Finance in 2023 . "It was about creating a cultural event, creating a societal moment. And we believe the benefit will carry forward for years to come."

But Wall Street was reluctant to buy the toy company's transformation, and Mattel's stock has fallen 35% year to date as a result.

Tariffs and rising oil prices since the start of the Iran war have put pressure on Mattel's margins as input costs for plastic and resin grow and higher gas prices have weighed on consumers.

In May, Kreiz acknowledged the "challenging economic times" but said consumers remain resilient. In the second quarter, Mattel's net sales rose 9% in constant currency, versus the same time in the prior year.

However, with shares remaining undervalued — with a median Wall Street analyst price target of $18 per share, per S&P Global Market Intelligence data — investors have been agitating for a change.

Brian Sozzi is Yahoo Finance's Executive Editor, host of the Sozzi Unleashed morning show and the Power Players with Brian Sozzi podcast, and a member of Yahoo Finance's editorial leadership team. Follow Sozzi on X @BrianSozzi , Instagram , and LinkedIn . Tips on stories? Email brian.sozzi@yahoofinance.com.