Mattel Inc.  (MAT - Get Report)  was up 7% to $11.99 on Tuesday after the toy company announced a partnership with Warner Bros. Pictures Group, which is owned by AT&T Inc.  (T - Get Report)  , for the first ever live-action Barbie movie. AT&T rose 1%.

The film will star award-winning actress Margot Robbie as Barbie, and she will also co-produce the film under her production company, LuckyChap Entertainment.

It's the first deal coming out of Mattel's new film division, Mattel Films, which was founded in September. The offshoot of the toy manufacturer is planned to have movies for many of its most recognizable brands, starting with Barbie, and is headed by another award-winning producer in Robbie Brenner.

Ynon Kreiz, Mattel CEO and chairman, says the deal is a prime example of how his company can leverage its brand portfolio's potential to turn Mattel into a "high-performing toy company." 

"Barbie is one of the most iconic franchises in the world and we are excited to partner with Warner Bros. Pictures and Margot Robbie to bring her to life on the big screen. We look forward to building on this collaboration with Warner Bros. Pictures as we tell the stories of our beloved brands," Kreiz said.

The deal also marks the first partnership between Mattel and Warner Bros. Pictures. Toby Emmerich, chairman of Warner Bros. Pictures, said he is excited about the partnership and of the casting choice.

"Margot is the ideal producer and actress to bring Barbie to life on screen in a fresh and relevant way for today's audiences," Emmerich said.

Mattel's stock has fallen by 26% from the same time last year -- dropping from $15.81 -- but the company has climbed since the beginning of the new year by almost 19%.