Mattel Inc (MAT) announced on Thursday that Ynon Kreiz will be the new Chief Executive Officer of the company, effective April 26. Kreiz is currently its board member and digital media executive and he will replace current CEO Margaret Georgiadis, a former tech executive at Google, who is leaving the company after serving for just over a year.
The California-based company is facing weak demand for its famous toys, as children are increasingly preferring video game consoles. Moreover, the bankruptcy of its top customer and toy retailer Toys ‘R’ has stacked more pressure on the already struggling company. Mattel shares lost have their value over the past year.
Kreiz previously led digital media company Maker Studios, which was later taken over by Walt Disney. He also served as chairman and chief executive of television production company Endemol Group. CEO at Global Toy Experts, Richard Gottlieb said Kreiz will likely help the company to boost brand equity and revenue by focusing more toward entertainment factors. It seems that Mattel is betting on Kreiz to turn things around due to his experience in entertainment, he added.
Speaking about the Georgiadis departure, Jackie Breyer said she think the high-tech experience that Georgiadis had perhaps wasn’t working out and now the idea is to get a new start especially after liquidation of Toys R. Breyer is the editor-in-chief of The Toy Book.
Georgiadis will serve in an advisory role at the toy maker till 10th of May. Afterwards, she will join genealogy website Ancestry.com as chief executive.
Mattel is set to report its financial results for the first quarter on 26th of April. Georgiadis along with the other executives will host the conference call.
The company shares slipped 3.17 percent and ended the day at $13.45 on Thursday. However, the stock slightly moved up in the after-hours trading.