Shares of Mattel surged nearly 20% on Thursday following reports that Authentic Brands Group has shown interest in acquiring the toy company. According to the Wall Street Journal, Authentic Brands is contemplating an offer that could value Mattel at over $20 per share, which translates to roughly $6 billion. At the time of the report, Mattel’s shares were trading just above $15.

A source familiar with the talks confirmed to CNBC that discussions between the two companies are underway but remain in very early stages. The source noted that Authentic Brands’ interest aligns well with its existing focus on entertainment properties, especially those aimed at children. Neither Mattel nor Authentic Brands have provided official comments, with Mattel reiterating their policy of not commenting on market rumors.

The interest from Authentic Brands follows Mattel’s recent announcement that Roger Lynch, the current CEO of Condé Nast, will become Mattel’s new CEO. Lynch, who has been on Mattel’s board since 2018, will assume the role of chairman starting October 2 and CEO by November 2. He succeeds Ynon Kreiz, who recently took on a co-CEO position at Paramount and Warner Bros. Discovery.

Mattel’s shares dipped 4% on Wednesday after the CEO transition announcement but rebounded sharply on Thursday amid takeover speculation. The potential deal could mark a significant development for Mattel as it navigates leadership changes while potentially attracting a strategic acquirer with strong entertainment sector expertise.