Acquisition SoftKey

mattel bought in great enthusiasm @ top of market in 1999 @ us$3.65b, found losing money 467 software titles. acquisition intended broaden mattel s product line , mattel sell more products appeal boys, tlc began reporting unexpected losses before deal completed. deal supposed add $50 million annually mattel s bottom line. company instead lost $82.4 million in fiscal year because of number of problems acquisition, including loss of key distribution deal , high return of unsold products retailers. in october, mattel announced earnings fall below expectations, prompting departure 1 month later of tlc s o leary , founder. mattel sold company gores group, llc, (gtg) share of future profits. gtg said of tlc s business structure, [it] textbook example of business built cobbled-together acquisitions, purchased larger company little idea of how make pieces fit together. said james bailey, president of gtg, there 7 separate internet initiatives, run different people. of these people had never met each other, though worked in same building. in 2001, gores sold learning company s entertainment holdings ubisoft, , of other holdings irish company riverdeep.