Mattel Inc. Names its New CEO

Mattel Inc., an American multinational toy manufacturing company, announced that Ynon Kreiz, a board member and digital media executive, would replace Margaret Georgiadis as the new CEO of the company.

Georgiadis is stepping down after 14 months of being the CEO of the creator of Hot Wheels and Barbie dolls.

Meanwhile, the company, whose shares have lost almost half of their value last year under Georgiadis’ term, is facing a weak demand for its famous toys at a time where children prefer videogames than toys.

The bankruptcy and liquidation of Toys ‘R’ Us, the top customer of Mattel, has piled more pressure on the company and highlighted the troubled retail environment.

Kreiz is the former head of Maker Studios, a digital media company, which assembled a stable of YouTube stars and Walt Disney acquired it.

According to the CEO of Global Toys Experts, Kreiz will start on April 26 and will likely help Mattel shift its focus toward using entertainment to boost the brand equity and revenue of the company.

“It appears that the Mattel board is betting that Kreiz, with his history in entertainment, can turn things around,” stated Richard Gottlieb, CEO of Global Toys Experts.

Georgiadis departure, on the other hand, has caught some experts by surprise.

“I think the high tech experience that Margo had maybe wasn't just working out,” Jackie Breyer, editor-in-chief of The Toy Book, said. “The idea is to try and get a fresh start especially in the wake of the Toys R Us liquidation.”

Under the leadership of Georgiadis, Mattel has ramped up efforts to cut costs, replaced veteran Finance Chief Kevin Farr September last year, and suspended its dividend.

Georgiadis will serve in an advisory role at the toy maker company until May 10. After that, she will take over as the chief executive of genealogy website, Ancestry.com.

According to Kreiz, who also previously served as the chairperson and CEO of Endemol Group, as the new CEO of Mattel he would make more use of its IP that includes iconic consumer brands like American Girl and Fisher-Price.

Kreiz, however, will become chairperson of the board after his election at an annual shareholders’ meeting scheduled for May 17, the company stated.

Meanwhile, Mattel will release its first-quarter results on April 26 and executives will host its conference call.

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