There are changes afoot at Funko as the Washington-based purveyor of pop culture and lifestyle products revealed that Brian Mariotti is immediately taking a leave of absence and will cease serving as the company’s CEO.
The move comes with the full support of Funko’s Board of Directors and happens nearly eight months following Mariotti’s return to the CEO role amid a leadership shuffle last fall. Director Michael Lunsford has been appointed interim CEO as the company begins a search for a new CEO considering both internal and external candidates for the role.
Funko has been my labor of love for nearly two decades. While I'm going to step away from the day-to-day business to recharge my batteries, I plan to stay active on our Board. I hope to come back and contribute to Funko again in new creative ways. I look forward to seeing our team and fans at San Diego Comic-Con next week.”
Mariotti previously owned Funko, having purchased the company from founder Mike Becker in 2005. Since that time, the company has gone through ownership changes leading to an IPO and a $263 million strategic investment from The Chernin Group (TCG) and an investor consortium, including Disney CEO Robert A. Iger, Rich Paul (CEO and founder of Klutch Sports Group, Head of Sports at United Talent Agency), and eBay. The move gave TCG a 25% stake in the maker of Pop! vinyl collectibles.
Lunsford joined the Funko Board of Directors in 2018 and previously served as Chair of the Compensation Committee and as a member of the Audit Committee.
“Brian and the Funko team have created an iconic and beloved brand, and I am honored to expand my role with the organization in the coming months,” Lunsford said. “In partnership with CFO/COO Steve Nave, President Andrew Perlmutter, and the leadership team, we will carefully guide the company’s efforts to grow profitability while continuing to delight our deeply connected fan community. I am very excited to spend time with our fans, employees, investors, and partners as we pursue the quest to capture the zeitgeist for pop culture enthusiasts.”
Funko became a billion-dollar company in 2021, but continues to battle a duality between rollercoaster earnings and internal challenges as it works to find a balance between strong consumer demand and opportunities for organizational and operational improvement.
The company is expected to report its second quarter 2023 earnings sometime next month.
