A large investor in Mattel is asking the toy maker to sell itself to a big investor and take its shares off the stock market.

Southeastern Asset Management, which oversees 4% of Mattel's stock, said in a letter released Thursday that the company would be better off if owned by a private equity firm, a toy competitor or a media company.

Mattel stock price was $15.41 as of Friday morning, up 2% from closing on Thursday. Its shares have fallen more than 20% this year.

Southeastern said Mattel's current strategy would make shareholders wait too long for the company's stock price to reach $30.

"We do not want to wait longer for that to be realized," Southeastern said in the letter, addressed to Mattel Chief Executive Ynon Kreiz. "We would prefer you lead the effort to explore strategic alternatives given your industry knowledge and relationships."

Mattel said in a release Thursday that it appreciates and will consider the perspectives shared by Southeastern and other shareholders. The company said it will maintain its focus on squeezing more profit from the many famous toys and other intellectual properties it controls.

"Our Board of Directors and management team are committed to acting in the best interests of all Mattel shareholders," the company said in the release.

Southeastern sent the open letter to Mattel's board and other shareholders on Thursday. It was originally sent to Kreiz in mid-March, shortly before the company announced it was laying off 65 employees.

Mattel has laid off hundreds of employees in the past year and a half.

The company's shares and profit took a dip after it announced weak holiday sales in 2025, in part due to disappointing Barbie sales.

Last year, its net sales were about $5.3 billion, down 1% from the year before.

Southeastern suggested three potential buyers.

Private equity firms, which have expressed interest in Mattel for years, could help provide financial stability, the shareholder said. If the company delisted, it wouldn't have to worry about quarterly reports or annual expectations, Southeastern said.

Another toy company could also be a potential buyer, the shareholder said, noting that Mattel and Hasbro have been in talks for years.

"We believe synergies between the two companies would be material, creating a stronger player in a global industry," Southeastern said.

Mattel also has valuable intellectual property that could interest large media companies, Southeastern said.

The three buyer options aren't mutually exclusive and could be combined, the shareholder said.

"We are grateful for your leadership that stabilized the business during a difficult period," Southeastern said in the letter. "We believe that now is the time for the company to explore strategic alternatives."

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