The massive success of Greta Gerwig’s Barbie is still rippling through the entertainment industry. In early June, Masters of the Universe will bring another toy franchise to the big screen. However, these films may be pushing the company behind the brands in an unexpected direction.
Southeastern Asset Management, which owns more than 4% of Mattel’s common stock, reportedly believes the company is not fully capitalizing on its entertainment assets. The investment firm is reportedly pressuring Mattel to make a deal with Hasbro.
He Man in Masters of The Universe – YouTube, Amazon MGM Studios
A potential merger between Mattel and Hasbro would unite a collection of IPs that some analysts believe would rank second only to Disney.
Investor Pressure Builds on Mattel
In an open letter dated May 7, 2026, Southeastern noted that it has invested in Mattel for more than eight years. The letter states that the company is now on an upward trajectory after a difficult period. It also says Mattel’s brands—like Barbie and Hot Wheels, though not named directly—are positioned for continued growth.
However, Southeastern added that it believes “now is the time for the Company to explore strategic alternatives.” The core of its argument is that Mattel could accelerate growth, especially in film and entertainment, under new ownership. The firm suggested selling Mattel to a private equity (PE) buyer, making a deal with Hasbro, or pursuing an acquisition by a media company.
A screenshot from a Barbie commercial – YouTube, Mattel
On that final point, Southeastern argues that media companies may now be searching for new acquisitions after the Warner Bros. bidding war ended. It believes Mattel’s IP portfolio would fit well with one of them.
“These three categories are not mutually exclusive: a toy company might not want to make movies or a media company might not want to make toys, all while certain private equity buyers might only want certain parts of Mattel,” the letter states. “There are creative solutions to maximize value for shareholders if Mattel actively explores the landscape.”
Why Hasbro Stands Out
A potential deal between Mattel and Hasbro is drawing particular attention. As Southeastern notes, the two toy manufacturers have discussed deals in the past. The firm also argues that “Hasbro has done a better job executing on digital growth than Mattel and therefore has more credibility in this important part of the business.”
A screenshot from Transformers One (2024), Paramount Pictures
In addition to Barbie and Masters of the Universe, Mattel controls an expansive collection of IPs. These include Hot Wheels, American Girl, Monster High, Polly Pocket, and more. Meanwhile, Hasbro owns Transformers, G.I. Joe, My Little Pony, and gaming franchises like Magic: The Gathering and Clue. Bringing those properties under one company could create stronger leverage with studios and open new cross-promotion opportunities.
Analysts Remain Skeptical
Southeastern suggests that the “most logical strategic buyer of Mattel is likely another ‘toy’ company” like Hasbro. However, Retail Dive reports that analysts at Jefferies wrote, “We see PE optionality as credible, media interest as strategically sound, and a [Hasbro] takeout as unlikely.”
In a statement, Mattel said it “will continue to consider the views expressed in Southeastern’s letter.”
Whether a merger actually happens or not, the conversation itself shows how toy companies are increasingly being valued not just for products, but for the entertainment universes they control.
What would you think of a Mattel-Hasbro deal? Sound off in the comments and let us know!
