MGA Entertainment On Mattel: 'Simply Too Much Mess To Clean Up'
Mattel Inc (NASDAQ: MAT) shares are down Wednesday morning following a report MGA Entertainment CEO Isaac Larian has abandoned interest in a merger deal.
"With close to $4 billion in debt at an average interest rate of 6.58%, a staggering 42% 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," Larian said in a statement to the Los Angeles Times.
Larian said Mattel cannot be salvaged at this point.
Back in April, Mattel recalled the Fisher Price Rock 'n Play Sleeper, which had been tied to infant deaths. According to analysts, the recall could cost Mattel $40 million to $60 million.
Mattel shares traded lower by 2.5% to $11.76 in Wednesday's pre-market session.
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