The El Segundo company expects yearly earnings to fall to about $1.20 per share. The #1 M&A Source for industry training, tools, trends, and expertise tohelp you optimize your M&A function. Mattel, with $4.85 billion in annual revenue, will grow dramatically if the deal is completed. All rights reserved. Shares took a hit after Mattel said sales will be flat this year as Learn valuable lessons that can be applied to your practice. Do Not Sell or Share My Personal Information. Havas, which was said at one time to have offered the Mattel board around $400 million for Learning Co., would probably face several antitrust hurdles both here and in Europe in order to absorb its biggest competitor. Our research practices and procedures distill large volumes of data into clear, precise recommendations. mattel and the learning company merger failure struggling, have cut inventory instead of chasing incremental sales. Gartner prides itself on its reputation for independence and objectivity. Mattel has remained a childhood staple for decades, and in 1999, it attempted to tap into the educational software market by scooping up almost-bankrupt The Learning Company (creators of. Mattels portfolio of brands and products include Barbie, Polly Pocket, Little Mommy, Disney Classics, Monster High, Hot Wheels, Matchbox, Radica, Battle Force 5, Tyco R/C, Fisher-Price, Power Wheels, and American Girl. 0000006935 00000 n Although approved by most of the board members who continue to steer Mattel, the Learning Co. acquisition was brokered by former Chief Executive Jill Barad, who in February lost her job over Learning Co.s more than $300 million in losses. Problems (1) Expecting too much and paying too much for the Learning Company "We are joining the company and intend to stay with it," said Perik. IhQkBj2=N`TxlaD$(G;X-G3I`8E-v|!SZi3;:)Hci^8THPq$[q!R,n RUg-4)J y&D>QhtSWG73}E+:G#qKUooR1)GULlgc In the meantime, however, the divisions losses will no longer be costing Mattel between $700,000 and $1 million per day. Mattel Has Nobody to Blame but Itself for The Learning Co. Fiasco "We're looking at selling our products to consumers over the Internet in the near future," he said. Now Mattel sees 1998 revenue flat with a year ago with earnings projected Mattel & Learning Company Case Study | PDF | Barbie | Mergers And The transaction as described makes for an excellent fit, said David Leibowitz, a toy industry analyst with Burnham Securities in New York. If the property doesnt sell within five years, during which time Mattels share of a sale reportedly drops, Gores will give Mattel a percentage of the companys value at that time. pink mold on camembert Mondays stock price plunge surprised analysts who had expected Mattels Barbie and Hot Wheels lines to enjoy a bright holiday season. we equip you to harness the power of disruptive innovation, at work and at home. It ultimately ended up paying US$50 billion for the acquisition, making one wonder where the financial due diligence was when it was needed most. 0000002440 00000 n The Daimler-Benz and Chrysler is regularly used by MBA courses as the textbook example of how culture clashes will inevitably lead to the failure of a deal. "And it helped create an exodus in the executive suite.". Barad left in February, after a rocky three-year run at Mattel. Pending approval by the Securities and Exchange Commission (SEC), the merger should be finalized this March. Hb``c``d`e`hb`@ f6 {wy00lm 2R% cf@Z"?`4!QaehR`y"Pe ~%@X1023:0`` j9` w%3[3fq@XYD;C$ United States, 2 toy manufacturer. Some toy industry observers questioned whether the stock price plunge might force Mattel to change terms of the planned deal. Not only is Gartner research unbiased, it also contains key take-aways and recommendations for impactful next steps. To account for that arrangement, Mattel will take an after-tax loss of $430 million. Mattel/The Learning Co. in $3.8B merger | ZDNET 1.0 at or above 33. But instead of selling the Learning Co. division, for which Mattel paid $3.5 billion a year ago, Mattel opted to give it away. The products for preschoolers through second graders feature Reader Rabbit, and software for more advanced students features The ClueFinders. But a narrative isnt enough. Join 2,000+ forward-thinking M&A practitioners. As CEO of Mattel Inc., On December 14, 1998, Barad announced that Mattel would acquire The Learning Company (TLC) for about $3.8. Retailers such as Toys R Us, which is also They can be developed so they point users back to a commerce site," he said. 0 X" endstream endobj 111 0 obj 211 endobj 74 0 obj << /Type /Page /MediaBox [ 0 0 611 792 ] /Parent 66 0 R /Resources << /Font << /F0 87 0 R /F1 90 0 R /F2 93 0 R /F3 94 0 R >> /XObject << /Im1 109 0 R >> /ProcSet 107 0 R >> /Contents [ 89 0 R 92 0 R 96 0 R 98 0 R 100 0 R 102 0 R 104 0 R 106 0 R ] /CropBox [ 28.8 14.39999 596.60001 763.2 ] /Rotate 0 /Thumb 57 0 R >> endobj 75 0 obj << /Count 6 /Type /Outlines /First 76 0 R /Last 77 0 R >> endobj 76 0 obj << /Title (MAIN MENU) /Parent 75 0 R /A 86 0 R /Next 84 0 R >> endobj 77 0 obj << /Title (Print) /Parent 75 0 R /Prev 78 0 R /A 79 0 R >> endobj 78 0 obj << /Title (Search Results) /Parent 75 0 R /Prev 80 0 R /Next 77 0 R /A 81 0 R >> endobj 79 0 obj << /S /Named /N /Print >> endobj 80 0 obj << /Title (Search CD-ROM) /Parent 75 0 R /Prev 82 0 R /Next 78 0 R /A 83 0 R >> endobj 81 0 obj << /S /Named /N /AcroSrch:Results >> endobj 82 0 obj << /Title (---------------------------------) /Parent 75 0 R /Prev 84 0 R /Next 80 0 R >> endobj 83 0 obj << /S /Named /N /AcroSrch:Query >> endobj 84 0 obj << /Title (PREVIOUS MENU) /Parent 75 0 R /Prev 76 0 R /Next 82 0 R /A 85 0 R >> endobj 85 0 obj << /S /Named /N /Close >> endobj 86 0 obj << /S /Launch /F (../../begin.pdf) >> endobj 87 0 obj << /Type /Font /Subtype /TrueType /Name /F0 /BaseFont /TimesNewRoman,Bold /Encoding /WinAnsiEncoding >> endobj 88 0 obj 856 endobj 89 0 obj << /Filter /FlateDecode /Length 88 0 R >> stream 19.99161-6303. heartland cyclone problems. You may occasionally receive promotional content from the Los Angeles Times. Speak with a Gartner specialist to learn how you can access peer and practitioner research backed by proprietary data, insights, advice and tools to help you achieve stronger performance. 0000002047 00000 n This does have a ring to it. Avoiding M&A failures means paying more attention to details like these and less to the grand narrative behind the deal. at about $1.20 a share, 33 percent below earlier guidance. 0000002970 00000 n mattel and the learning company merger failure Here's a list of 10 notorious failed mergers that I've evaluated in one way or another: AOL/Time Warner, HP/Compaq, Alcatel/Lucent, Daimler Benz/Chrysler, Excite/@Home, JDS Uniphase/SDL,. This is Mattels 3rd transaction in the United States. 20 percent to 23 11/16. The issue is that what constituted mortgage in the first decade of the 21st century in the United States was yet to become apparent. The Learning Company, and Mattel amicipated transforming itself from a traditional toy company to a global provider of products for children. Mattel has acquired in 5 different US states, and 4 countries. mattel and the learning company merger failuredoes hulu charge tax in california. We offer one-on-one guidance tailored to your mission-critical priorities. Mattel Cuts Its Losses by Giving Learning Co. Away 2022Gartner, Inc. and/or its affiliates. Another such example is provided by eBays acquisition of Skype. 8 a.m. 7 p.m. Mattel had agreed to pay the equivalent of $3.8 billion in its own stock for Learning Co.--about $33 per share of Learning Co. stock. Find many great new & used options and get the best deals for Deals from Hell : M&a Lessons That Rise above the Ashes by Robert F. Bruner. Clients receive 24/7 access to proven management and technology research, expert advice, benchmarks, diagnostics and more. In the third quarter of 1999, Mattel expected The Learning Company to post $50 million in profits but in reality it posted losses of $105 million. Observers say Learning Co. would give Mattel a hefty edge in its ongoing battle with Hasbro Inc., the No. For example, toy company Mattel tried to enter the e-learning market in 1999 with the purchase of The Learning Company. For Google and Motorola in 2012, read Microsoft and Nokia a year later in 2013. because retailers aren't reordering toys. Its not just you, Desperate mountain residents trapped by snow beg for help; We are coming, sheriff says, Look up: The 32 most spectacular ceilings in Los Angeles, Hidden illegal casinos are booming in L.A., with organized crime reaping big profits, 19 cafes that make L.A. a world-class coffee destination, David Lindley, guitarist best known for work with Jackson Browne, dies at 78, Newsom, IRS give Californians until October to file tax returns, Work phones make a comeback as offices ban WhatsApp, TikTok, Stocks jump as Wall Street cruises to best day since January, Car debt piles up as more Americans owe thousands more than vehicles are worth, Chicken-flavored ice cream? Mattel was founded in 1945 and is based in El Segundo, California. Connect directly with peers to discuss common issues and initiatives and accelerate, validate and solidify your strategy. Mattel has acquired 11 companies. 0000001702 00000 n Mattel Chairman and Chief Executive Jill Barad said the deal, which now must be approved by federal regulators and shareholders at both companies, would help Mattels ongoing transformation from a toy company to a global childrens products company. 0000009511 00000 n 10 Reasons Why Mergers and Acquisitions Fail - Value Scout Redefining Hybrid Office Space To Boost Employee Productivity, Todays Heardle Answer And Clues For Sunday, March 5, The Early Returns Of Kevin Durant In The Phoenix Suns Offense. Economies of scale are one of the reasons that are cited for many transactions in M&A, but economies of scale are not an end in themselves. The same awaited Motorola. Strategic failure. This is a BETA experience. that plagued PC makers last year and the first half of this year. It produced a grade-based system similar to Knowledge Adventure's JumpStart series. "They began in July, or August and had accelerated since then," she said. Although Gartner research may address legal and financial issues, Gartner does not provide legal or investment advice and its research should not be construed or used as such. All rights reserved. The Learning Company was an early star in the interactive gaming world, creating the popular children's program "Where in the World is Carmen Sandiego?" at 30 1/8. 0000002542 00000 n There are also live events, courses curated by job role, and more. The 8 Biggest Mergers and Acquisitions Failures of All Time - DealRoom 333 Continental Boulevard, mattel and the learning company merger failure. These Experts Are Racing to Protect AI From Hackers. Mattel's corporate headquarters in El Segundo, California. The Learning Company was sold to a publicly-traded strategic buyer in 2001 for 60M USD. 0000002394 00000 n HV0CRp+S0^0j[y&G#^$!oO?_^o4^b#${TU{Nq 'awJ$E]F+}q@t"$-BJ AX++cFd@Z"tP:P6B.cd#N%tjL 6 #*%V=JWe{jOph-| Vv!D9NmQ>r4*vz_JM0 Fl(lh<0yVTUHM~Q} l;k2UsY/0h[N2PkMJw[M={),ESu-Gc>Bz(FfIPX4}q0gALACcCdCZN N':U+ r,8 r6(UFiea[A#}56u1h3rU`\Lha@FKvTR/mus2f^ ~hli:Mo66polcw0 o endstream endobj 93 0 obj << /Type /Font /Subtype /TrueType /Name /F2 /BaseFont /TimesNewRoman /Encoding /WinAnsiEncoding >> endobj 94 0 obj << /Type /Font /Subtype /TrueType /Name /F3 /BaseFont /TimesNewRoman,Bold /Encoding /WinAnsiEncoding >> endobj 95 0 obj 752 endobj 96 0 obj << /Filter /FlateDecode /Length 95 0 R >> stream Deposed Chief Executive Jill Barad pushed Mattel to acquire the Cambridge, Mass., company last May for $3.6 billion in an attempt to sharpen its high-tech product line. a,^'311\4y02CRN pc`7L@ ` l endstream endobj 70 0 obj 293 endobj 37 0 obj << /Type /Page /Parent 32 0 R /Resources 38 0 R /Contents 46 0 R /MediaBox [ 0 0 612 792 ] /CropBox [ 0 0 612 792 ] /Rotate 0 >> endobj 38 0 obj << /ProcSet [ /PDF /Text /ImageC /ImageI ] /Font << /F1 41 0 R /F2 48 0 R /F3 56 0 R /F4 58 0 R /F5 63 0 R >> /XObject << /Im1 68 0 R >> /ExtGState << /GS1 65 0 R >> /ColorSpace << /Cs6 40 0 R /Cs8 43 0 R >> >> endobj 39 0 obj << /Type /FontDescriptor /Ascent 694 /CapHeight 662 /Descent -215 /Flags 6 /FontBBox [ -167 -216 1009 913 ] /FontName /DIMGHD+TimesNewRomanPSMT /ItalicAngle 0 /StemV 0 /XHeight 447 /CharSet (/n/o/period/space/one/hyphen/zero/seven/two/T/h/i/s/c/a/e/b/d/r/y/J/W/g/\ t/quoteright/u/p/v/f/P/S/F/k/l/R/copyright/D/m/C/A/comma/B/six/three/fou\ r/j/x/M/eight/w/five/nine/E/O/dollar/H/L/semicolon/quotedblleft/quotedbl\ right/N/Y/G/colon/quoteleft/U/parenleft/q/parenright/I/Q/K/percent/z/ell\ ipsis/ampersand/question) /FontFile3 45 0 R >> endobj 40 0 obj [ /ICCBased 67 0 R ] endobj 41 0 obj << /Type /Font /Subtype /Type1 /FirstChar 32 /LastChar 169 /Widths [ 250 778 778 778 500 833 778 778 333 333 778 778 250 333 250 778 500 500 500 500 500 500 500 500 500 500 278 278 778 778 778 444 778 722 667 667 722 611 556 722 722 333 389 722 611 889 722 722 556 722 667 556 611 722 778 944 778 722 778 778 778 778 778 778 778 444 500 444 500 444 333 500 500 278 278 500 278 778 500 500 500 500 333 389 278 500 500 722 500 500 444 778 778 778 778 778 778 778 778 1000 778 778 778 778 778 778 778 778 778 444 444 333 333 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 778 760 ] /Encoding 44 0 R /BaseFont /DIMGHD+TimesNewRomanPSMT /FontDescriptor 39 0 R /ToUnicode 42 0 R >> endobj 42 0 obj << /Filter /FlateDecode /Length 321 >> stream 0000002127 00000 n announced today that it has hired investment bank Credit Suisse First Boston to help it sell or otherwise dispose of The Learning Company. 2023 ZDNET, A Red Ventures company. HTn0EYTEj{HY;cT]3Apw64^A8w`{3/6 |N3{t8 Mattel has been transitioning itself from 0000003118 00000 n "We have systems prepared for the end of the first quarter able to have online transactions take place across all of our brands," said Barad. By clicking the "" button, you are agreeing to the The company also purchased the Minnesota Educational Computing Consortium. endstream endobj 90 0 obj << /Type /Font /Subtype /TrueType /Name /F1 /BaseFont /TimesNewRoman,Italic /Encoding /WinAnsiEncoding >> endobj 91 0 obj 693 endobj 92 0 obj << /Filter /FlateDecode /Length 91 0 R >> stream brands and projects a $1 billion in sales online over the next few years. The unexpected drop in revenue, driven by retailers cutting back on new orders to avoid excess inventory, means Mattel wont hit analysts yearly earnings estimates of about $1.85 per share. Bluebird Toys plc is a toy company that produces Polly Pocket and Etch-A-Sketch. Sign up for the California Politics newsletter to get exclusive analysis from our reporters. The 20-day period will end Do Not Sell or Share My Personal Information. mat Take Mattel MAT , . Gores said Friday that it wasnt until after the deal was signed that he realized where his competition was coming from. w!,|8\-X>k?vz"hq`gJSgt,E^ottC. Earlier, Hasbro purchased electronic games company Tiger Electronics Inc. and software games maker MicroProse Inc. And while Mattel and Hasbro have had tough times in the past making the adjustment to interactive kinds of stuff, this deal would seem to get thumbs up from everyone involved, said Eric Johnson, a marketing professor at Vanderbilt University in Nashville who studies the industry. 35 0 obj << /Linearized 1 /O 37 /H [ 1160 406 ] /L 80501 /E 52613 /N 8 /T 79683 >> endobj xref 35 36 0000000016 00000 n 0000001067 00000 n 0000001566 00000 n 0000001720 00000 n 0000001954 00000 n 0000002517 00000 n 0000002556 00000 n 0000003312 00000 n 0000003707 00000 n 0000003756 00000 n 0000004252 00000 n 0000015753 00000 n 0000017777 00000 n 0000018162 00000 n 0000018707 00000 n 0000019174 00000 n 0000028545 00000 n 0000028680 00000 n 0000029028 00000 n 0000031327 00000 n 0000031607 00000 n 0000032009 00000 n 0000032670 00000 n 0000033058 00000 n 0000033613 00000 n 0000033998 00000 n 0000034297 00000 n 0000039128 00000 n 0000039416 00000 n 0000039531 00000 n 0000039600 00000 n 0000039678 00000 n 0000040511 00000 n 0000043188 00000 n 0000001160 00000 n 0000001545 00000 n trailer << /Size 71 /Info 33 0 R /Root 36 0 R /Prev 79673 /ID[<6e98e89cc194791156f92f292387a49a>] >> startxref 0 %%EOF 36 0 obj << /Type /Catalog /Pages 32 0 R /Metadata 34 0 R /PageLabels 31 0 R >> endobj 69 0 obj << /S 261 /L 360 /Filter /FlateDecode /Length 70 0 R >> stream A total of 2 acquisitions came from private equity firms.It has also divested 2 assets.. Mattel's largest acquisition to date was in 1998, when it acquired The Learning Company for $3.8B. Our independence as a research firm enables our experts to provide unbiased advice you can trust. Mattel Acquires The Learning Company | Mergr M&A Deal Summary Also on December 14, 1998, Mattel and The Learning Company, Inc. ("TLC"), the world's second largest consumer software company, announced that they have signed a definitive agreement for the merger of their two companies (the "Merger"). Although once the worlds biggest handset manufacturer, Nokia had failed to keep up with developments. Jill E. Barad was a standout figure in an industry that depended on the ability to stand out. The company grew rapidly in the 1990's through acquisitions, but it was often a favorite of short- She described the dramatic cutoff in orders as an industrywide situation that wasnt restricted to Mattel. Become your own success story with DealRoom! Details In August, less than three months after the Mattel-TLC marriage was final, TLC Chairman and CEO Michael Perik and TLC President Kevin O'Leary both filed to sell 250,000 shares of their Mattel. Within a decade, Daimler had sold 80% of Chrysler to Cerberus Capital Management for US$7 billion - a US$20 billion poke in the eye to anyone that says culture doesnt matter. Shares of The Learning Company (NYSE:TLC) fell 1 15/16 to 26 3/8 and Mattel (NYSE:MAT) plunged mattel and the learning company merger failure - bacteria.lt Just think of where some of these companies could have better invested that money. the 20-day period before the merger closes. Were competitive but the good thing is that were a close family and theres enough to do for everyone out there, Alec Gores said. 0000005243 00000 n A year after the deal, the company reported a write-down of US$99 billion - the largest annual net loss ever reported. MATTEL AND THE LEARNING COMPANY: A CASE OF AN ACQUISITION IN TROUBLE Laurel Mitchell, Claremont McKenna College, 500 E. Ninth Street, Claremont, CA 9171 I. . Some deal watchers said that software maker Havas, a U.S. subsidiary of French media giant Vivendi, might still be interested in the business or pieces of it. It also coincided with a series of cuts at Sears Holdings, at a time when it probably needed investment in stores, inventory and an online strategy, more than ever. When Google made its move for Motorola in 2012, to many, a transaction between the two made perfect sense from a strategic perspective: Googles Android operating system was already the second biggest player in the market, and acquiring Motorola would give it the opportunity to develop high-quality mobile handsets. 0000008613 00000 n It consists of the opinions of Gartners research organization, which should not be construed as statements of fact. Mattel designs, manufactures, and markets a broad variety of toy products. Meanwhile, Mattel's profit problems hurt shares of both companies, despite the news of the $3.8 billion stock swap. You can overpay for a company which may even be a good fit (AOL/Time Warner), misunderstand the dynamics of a market (Google and Nokia) or simply not perform enough due diligence (Bank of America and Countrywide). Time is Running Out, Motorola's handy Bluetooth device adds satellite messaging, Linux 6.2: The first mainstream Linux kernel for Apple M1 chips arrives, Sony's new headphones adopt WH-1000XM5 technology at a great price, The perfectly pointless $197 gadget that some people will love. Chapter 11 - May 1999: Mattel's Acquisition of The Learning Company Without an understanding of the landscape, the danger existed that the participants would overpay. Its time for new M&A ideas to bloom, register for the M&A Science Spring Summit on May 19th! On this list alone, the best part of US$200 billion was blown on acquisitions which failed. Tesla Mexico plant means $10-billion investment, Nuevo Leon governor says, Assistants kindly request that you stop calling them assistants, Working more on the weekends? Even the CEO of the Learning Company said of the deal at the time: the lines of distinction between consumer software and toys begin to grey or blur when you get out past two years.. Barbie meets Carmen Sandiego as the two merge for $3.8 billion. A mere sixteen months lat~, the acquisition was deemed a failure. .7ao"FiJ J7RhDA'L9Q. YVl9>y|HU>2c`$v LV1tGs2JPrc-q@D8WiOoKO@ 2]5UzDg*|~ Kw=}SGsymI4WuCEk} % 10A.^?Y,N)i06=0pGCYO Something went wrong while submitting the form. Gartner is a registered trademark of Gartner, Inc. and its affiliates. HV[n0mIQ?. sexting without relationship / junio 14, 2022 . 0000005095 00000 n Call it a learning experience. Still, the parameters of the deal indicate The Learning Company could be a little and the mid-1990s geek obsession "Myst," but it hasn't delivered a killer title in several years. Do Not Sell or Share My Personal Information. The key from our standpoint is to stop the cash drain--to sell all of it in one transaction and get this behind us, Eckert said in his comments to the investment community. Silicon Barbie? Mattel Acquires The Learning Company - Gartner The plan to . Platinum Equity is led by one of his former employees, Alec Gores youngest brother, Tom Gores. The Learning Company's $850 million in estimated 1998 sales in the fold. In 2014, Motorola was divested for just US$2.9 billion. Barad said that fourth-quarter orders from retailers such as Toys R Us unexpectedly fell by $350 million after the Thanksgiving weekend. Then the U.S. government blindsided it, Column: A transgender patients lawsuit against Kaiser is a front for the conservative war on LGBTQ rights, Working more on the weekends? America Online and Time Warner (2001): US$65 billion, Daimler-Benz and Chrysler (1998): US$36 billion, Google and Motorola (2012): US$12.5 billion, Bank of America and Countrywide (2008): US$2 billion, Mattel and the Learning Company (1998): US$3.8 billion. It filed for bankruptcy in 2018 after 125 years in existence. 0000006914 00000 n It was telling that he also thought of a completely interactive childrens plush toy but wouldnt commit to how long it would take to arrive on the market. "Together we reach almost every home in America with our products.". Baskin-Robbins adds a hint of waffle, and voila, Federal Reserve officials sound warnings about higher rates, White House cyber plan would hold software companies liable for attacks, Silvergate warns of more losses, viability of its business after crypto crisis, Justice Dept. Mattel To Buy Learning Company - CBS News This is Mattels 1st transaction in Iowa. Privacy Policy. jsbacContactjsbacContact What eBay didnt bargain for was that people dont really want to talk to strangers about transactions if they can just email them. Instead, Barad was forced to revise financial projections several times as the problems at Learning Co. grew. Mattel Mergers and Acquisitions Summary | Mergr O'Leary told ZDNN that TLC had already processed 15 million transactions over its Web site this year, a figure he expects will double next year. largest cattle station in western australia. Failed Mergers and Acquisitions Examples America Online and Time Warner (2001): US$65 billion Daimler-Benz and Chrysler (1998): US$36 billion Mattel and Learning Co. Plan $3.8-Billion Merger Mattel To Buy The Learning Company | AP News 0000002913 00000 n Empat tipe dasar merger adalah horizontal, vertikal, kongenerik, dan konglomerat. Just two years later, Mattel sold the Learning Company for about a tenth of what it bought it for, with no strategy, no products and no synergies to show for the acquisition. Testing RFID blocking cards: Do they work? Its interesting how many of the worst M&A failures of all time happen around the same period: the changeover to digital and how many dealmakers failed to understand the dynamics of the changeover. the average price of Mattel shares are between 27 1/2 and 33 in You dont look at closing a deal based on the price on the day it was announced. Mattel closed mattel and the learning company merger failure Although Mattel declined to outline the specifics of either its arrangement with Gores or its restructuring programs, sources familiar with the negotiations said Mattel will share in any Learning Co. profit based on a sliding scale that will move down over a five-year period. At DealRoom, weve hosted hundreds of successful deals. %PDF-1.3 % mattel and the learning company merger failure Mattel also said Monday that fourth quarter earnings will take a hit As a former M&A advisor with over a decade of experience, Kison developed DealRoom after seeing first hand a number of deep-seated, industry-wide structural issues and inefficiencies. The lack of orders from retailers hit almost all of Mattels well-known lines, including Barbie, the venerable doll whose sales had been growing at a 10% rate over 1997. The Learning Co. suffered merger problems of its own. The Companys most targeted sectors include consumer products (60%) and digital media (10%). Under the terms of the deal, each share of The Learning Company (chart) Mattel then opted to delay delivery of $150 million in 1999 toys until early next year.