Shares of Mattel rose after The Wall Street Journal reported that the company has attracted takeover interest from Authentic Brands Group.
The stock rose 4.4% to $13.22 following the Journal's report, regaining its losses after closing down 4% on Wednesday.
The brand-licensing company has approached Mattel and discussed an offer of more than $20 a share, suggesting a valuation of around $6 billion or more, the Journal reported, citing people familiar with the matter.
A deal may not come together and it's not clear how Mattel will react to Authentic Brands' approach, the Journal reported, adding that another suitor could emerge.
The report came a day after Mattel appointed Roger Lynch, the chief executive of Condé Nast, as its next CEO, sending shares lower. The transition could also complicate deal talks, according to the Journal's report.
No formal sale process for Mattel is currently underway, the Journal reported.