Embattled toymaker Mattel recently rejected a merger bid from Isaac Larian, the toy billionaire and CEO of the company best known for manufacturing Bratz dolls, according to a report Friday.
Larian approached Mattel in late April with an undisclosed financial bid to merge his company, privately held MGA Entertainment, with the toymaker. Under the proposed terms, Larian would lead the combined entity.
Mattel, however, rejected the bid out of hand. The company told Larian in a letter obtained by The Wall Street Journal that it did not think the deal was in its best interests.
“Mattel is not interested in further discussing the matter with you,” Christopher Sinclair, who retired as chairman of Mattel on Thursday, said in the letter.
The company’s stock fell more than 1% in trading Friday. The company said in a statement to the Journal that it “recognizes and takes seriously its duty to consider any credible proposal.”
Mattel shares have been under pressure for months as its key retail partner, Toys “R” Us, declined. The venerable toy retailer is in the process of winding down its U.S. business and selling off its remaining inventory after failing to find a buyer during bankruptcy proceedings.
In a bid to reverse its slump, Mattel recently named Ynon Kreiz as its new CEO.
Larian made a $675 million bid last month to purchase Toys “R” Us’ U.S. operations. Toys “R” Us rejected the offer because it fell short of mandates outlined in bankruptcy court.