Barbie owner Mattel is in the crosshairs of activist investors who want the toy maker to cash in on the success of the blockbuster film and shake up the business.
Barington Capital said it had built up a stake recently and wants to see significant changes due to the rising popularity of video games and apps among its target audience of children.
A possible sale of the Fisher-Price and American Girl toy brands, reducing its reliance on stock-based compensation, and initiating a $2 billion stock repurchase program are three of the options it has put forward.
In a letter to Mattel, Barington Capital said that the proposed measures, coupled with ongoing improvements in Mattel's main doll and toy vehicle sectors, could more than double its share price within three years.
"We believe that these brands [ American Girl, Fisher-Price] are now detracting from the success of Mattel's other segments, and hurting shareholder value."
Mattel replied: "We look forward to engaging with Barington as we do with all our shareholders,"
The activist also wants Mattel’s chairman and chief executive Ynon Kreiz to split his roles.