The $110 billion merger between Paramount (PSKY) and Warner Bros. Discovery (WBD) is nearing finalization with the appointment of Ynon Kreiz as co-CEO. Kreiz, who led Mattel (MAT) since 2018, will step down from the toy company effective Oct. 2 and join Paramount on Oct. 5.
Kreiz will serve alongside David Ellison, who remains Chairman and CEO of the combined media company. Both will also sit on the combined company's board.
Ellison said Kreiz brings "strategic vision, operational depth and experience running a public company at the highest levels of media."
The combined company will focus on four priorities: winning in content, becoming the most technologically capable media company, maximizing operational efficiencies, and building trust with creators, audiences, consumers, employees, advertisers and partners.
Mattel's stock fell four percent Wednesday following the departure announcement. Board member Roger Lynch was appointed interim CEO.
Lynch previously led Condé Nast from 2019, driving growth in subscriptions, video, live experiences, commerce and partnerships. He also served as CEO of Pandora and Sling TV.
Kreiz revitalized Mattel during his tenure, overseeing the Barbie brand's resurgence and expansion into theatrical releases, including the 2023 blockbuster "Barbie." In 2023, Kreiz told Yahoo Finance: "It was never about just trying to sell more toys. It was about creating a cultural event, creating a societal moment. And we believe the benefit will carry forward for years to come."
Mattel's stock has declined 35 percent year to date despite Kreiz's operational wins. The company faces margin pressure from tariffs, rising oil prices and elevated input costs for plastic and resin. Net sales rose nine percent in constant currency during the second quarter compared to the prior year.
Analysts assign Mattel a median price target of eighteen dollars per share, according to S&P Global Market Intelligence, suggesting undervaluation relative to the operational progress Kreiz delivered.
