Shares of Funko, the popular toymaker, plummeted by over 20% as news broke that Chief Executive Officer Brian Mariotti will be taking a temporary leave of absence. This sudden departure sent shockwaves through the company, resulting in a significant drop in stock prices.
As of Friday morning, the stock price fell by 20.4% to $8.00. Over the past year, Funko shares have experienced a drastic decline of approximately 66%.
Despite his absence, Mariotti assured stakeholders that he will remain actively involved as a member of Funko’s board. This isn’t Mariotti’s first time leading Funko, as he previously held the position of CEO from 2017 until January 2022, when he transitioned into the role of chief creative officer. However, he once again assumed the CEO position in December.
To fill the void left by Mariotti’s departure, Funko has appointed Michael Lunsford, a current board member, as the interim CEO. In addition, the company has initiated a search for a permanent successor. This search will encompass both internal and external candidates, ensuring that Funko finds a leader who can drive the company forward during this transitional period.
Lunsford, an experienced director who joined Funko’s board in 2018, has previously served as interim CEO for companies such as EarthLink and RealNetworks.
While this unexpected announcement has undoubtedly shaken Funko and its investors, the company remains committed to finding a capable leader who will guide them through this challenging period of change.