MGA calls off Mattel merger talks, says 'too much mess to clean up'
MGA Entertainment CEO Isaac Larian, released an update regarding news of the second offer to merge with Mattel, as reported last week. Stated Larian, "With close to $4 billion in debt at an average interest rate of 6.58 percent (as of March 2019), a staggering 42 percent in operating expenses, and a major legal liability for having sold a faulty Fisher Price Rock 'n Play Sleeper for years even as multiple baby fatalities occurred, there is simply too much mess to clean up at Mattel. It is my opinion that Mattel cannot be salvaged at this point and most certainly not under the current, hostile board and management. As such, after considering the disastrous financial details of Mattel, and the direction its board and management are pursuing, I think, at this time, it is in the best interest of MGAE not to continue forward with a Mattel offer. Regardless of how you look at the numbers, Mattel has a negative net worth." Shares of Mattel are down 4%, or 52c, to $11.54 in afternoon trading.