Net Worth Ranker
What Is Ruth Handler’s Net Worth?
At the time of her death on April 27, 2002, Ruth Handler, the visionary American businesswoman and inventor, possessed a net worth of $100 million. This substantial wealth was primarily accumulated through her pioneering work in the toy industry, most notably as the co-founder of Mattel and the creator of the iconic Barbie doll.
The Rise of a Toy Industry Titan: Mattel and Barbie
Ruth Handler’s journey began long before Barbie’s debut. Born Ruth Mosko to Polish-Jewish immigrants in Denver, Colorado, in 1916, her early life involved working in her family’s drug store. In 1938, she married Elliot Handler, and the couple relocated to Los Angeles. It was here, in 1945, that they partnered with Harold Matson to establish Mattel. The company’s name was cleverly derived from “Mat” in Matson and “El” in Elliot.
Initially, Mattel focused on producing picture frames. However, Elliot’s sideline of crafting dollhouse furniture from frame scraps proved to be significantly more lucrative, prompting the company to pivot its focus towards the toy market. Within just a few years of this strategic shift, Mattel’s revenue soared to $2 million.
Under the Handlers’ leadership, Mattel introduced a string of innovative toys throughout the 1940s and 1950s. These included the “Uke-a-doodle,” a toy ukulele, and the “Music Box Jack-in-the-Box.” A pivotal moment in Mattel’s ascent came in 1955 when they became the first toy company to advertise on television. They invested $500,000, the entirety of the company’s funds at the time (equivalent to nearly $6 million today), to become the primary sponsor of “The Mickey Mouse Club.” This bold marketing move proved incredibly successful, driving sales up by 25% and solidifying Mattel’s position as an industry leader.
The inspiration for Barbie struck Ruth Handler as she observed her daughter Barbara playing with paper dolls, assigning them adult roles rather than treating them as baby dolls. During a trip to Switzerland, she encountered the Lilli doll, a German doll with an adult figure, which further solidified her vision. Despite initial skepticism from male executives, including her own husband Elliot, who famously declared that “no mother is ever going to buy her daughter a doll with breasts,” Handler persevered in developing a three-dimensional adult fashion doll.
Barbie made her debut at the 1959 New York Toy Fair. Despite some initial resistance, the doll became a phenomenal success, generating over $100 million in sales by 1965. In 1968, Mattel introduced its new line of toy cars: “Hot Wheels”. Soon, Hot Wheels became the #1 best-selling toy in the world, a distinction that it still holds now.
Mattel went public in 1963, listing on the New York Stock Exchange. Today, it trades on the NASDAQ under the ticker symbol “MAT,” with a market capitalization of $6 billion as of this writing. In late 2013, the company’s market capitalization reached an all-time high of $16 billion.
Challenges, Reinvention, and Legacy
In 1970, Ruth Handler faced a personal health challenge when she was diagnosed with breast cancer and underwent a mastectomy. This experience led her to create Nearly Me, a company that produced prosthetic breasts designed to look and feel natural. This venture showcased her entrepreneurial spirit and her desire to make a positive impact on the lives of women facing similar challenges.
Around the same time, Mattel encountered financial difficulties, and in 1975, the Handlers were forced out of the company amid accusations of financial reporting irregularities. In 1978, Ruth Handler and other Mattel executives were indicted on charges of conspiracy, mail fraud, and providing false financial statements to the SEC. They were accused of manipulating Mattel’s financial records to inflate earnings and deceive investors. Handler pleaded no contest to the charges, resulting in a $57,000 fine and 2,500 hours of community service. This marked the end of her official association with Mattel, but it did not diminish her legacy as a pioneering businesswoman and inventor.
Ruth Handler’s impact extends far beyond the toy industry. Barbie has evolved to reflect changing social values, with the doll taking on various careers and roles that showed girls they could aspire to be anything. Through Nearly Me, Handler helped reduce the stigma around breast cancer and mastectomy, providing comfort to thousands of women. She detailed her life story in her 1994 autobiography “Dream Doll: The Ruth Handler Story.”
Real Estate Holdings
In 1993, Ruth and Elliot Handler purchased an oceanfront home in the gated Malibu Colony private community. This property, a testament to their success, was sold by their children in 2015, a few years after Elliot’s death, for $9.8 million after being initially listed for $15 million. The Handlers’ primary residence was a 3,200-square-foot penthouse in Los Angeles that eventually became known as the “Barbie penthouse.” The Handler’s children sold the penthouse in August 2012 for $2 million. In August 2021, the penthouse’s owner attempted to sell it for $10 million, but ultimately pulled the listing.
Personal Life and Family
Ruth and Elliot Handler were married from 1938 until her death in 2002. They had two children, Barbara (the namesake of “Barbie”) and Kenneth (aka “Ken”). Elliot Handler died in 2011.
