Jump to content

LJN

From Wikipedia, the free encyclopedia
(Redirected from LJN Toys Ltd.)
This article is about the defunct toy company and video game publisher. For other uses, see LJN (disambiguation).

LJN Toys Ltd.
Company typeSubsidiary
IndustryVideo games
Founded1967; 57 years ago (1967)
FounderJack Friedman
Defunct1994; 30 years ago (1994)
FateDissolved
Headquarters
New York City
,
US
Parent

LJN Toys Ltd. was an American toy company and video game publisher founded by Jack Friedman in 1967. MCA Inc. acquired the company in 1985, and sold to Acclaim Entertainment in 1990. The toy division of the company was closed by Acclaim and a majority of its employees were fired as the company was shifted towards video game publishing. It was closed in 1994, but its label was used once more in 2000.

History

[edit]

Early history (1967–1985)

[edit]

Jack Friedman founded LJN in 1967[1] using funds from his employer Norman J. Lewis Associates (from which the company name "LJN" is derived, being a reversal of Lewis' initials)[2] after seeing the sale figures of Mattel and Milton Bradley Company increase.[3] Friedman later founded THQ and Jakks Pacific after leaving LJN.[4] LJN shifted money used for television advertising to instead purchase licenses to make toys based on television shows.[5] The first toyline by LJN based on a television show was for Emergency![6] The highest amount the company paid for a license by 1982 was $250,000.[7]

LJN purchased the license to make toys based on E.T. the Extra-Terrestrial for $25,000 due to other companies declining the option, including Kenner Products and Ideal Toy Company, and sold over $16–25 million worth of merchandise without the need of an advertising campaign. A doll based on Brooke Shields was released with a $2 million advertising budget and made over $12 million in 1982. LJN's revenue rose from $5 million in 1971 to $70 million in 1982 due to the E.T. and Brooke Shields toys.[8][7][9][10][11]

In 1984 LJN became the toy licensee of the World Wrestling Federation. The Wrestling Superstars line, which featured action figures based on WWF's roster of wrestlers, was produced from 1984 to 1989.[12] LJN competed with Mattel in the toy market.[8] The company produced the ThunderCats toyline in competition with Mattel's Masters of the Universe.[13]

MCA ownership (1985–1990)

[edit]

On March 26, 1985, MCA Inc. announced that it would purchase 63% of LJN's stocks for $39.8 million and proposed to buy the remainder of the stock for $14.26 for each share which would increase the total value of the deal to almost $65 million.[14] However, the company failed to make a net income from 1986 to 1989, and MCA had to take a $53 million after-tax charge due to the expenses of the company before selling it to Acclaim Entertainment for $30 million in April 1990.[15][16][17] LJN had a revenue of $110,510,000 and a net loss of $37.3 million in 1987.[18] MCA received 1.2 million shares in Acclaim as part of the LJN deal. 181,000 shares were returned as part of a price adjustment agreement and the remainder was sold for around $4.3 million in 1991.[19]

LJN entered the video game industry by publishing games based on movies and television shows developed by companies including Atlus, Beam Software, and Rare for the Nintendo Entertainment System in 1987.[20] The company released the LJN Video Art in 1987.[21][22] At least 75% of the company's $70 million in sales in 1990 came from video game sales on the Nintendo Entertainment System and Game Boy.[15][23]

The company released a paint gun line named Gotcha! with a license from the film Gotcha!, but this line were criticized by consumer protection groups due to the danger it posed to eyes.[24] The toyline was financially unsuccessful, and MCA had to take a $35 million after-tax charge due to its failure and the expenses of the Coleco.[25] The company was also criticized by police officers and Americans for Democratic Action for its Entertech line of toy water guns due to how realistic they looked; LJN changed the design of the toys after three people in the United States from ages 13 to 19 were killed as a result of police officers thinking they had actual guns, and multiple cities and states banned the sale of realistic toy guns.[26][27][28]

Lawrence J. Kirk Jr. fired half of the company's employees as part of a cost-cutting plan during his seven months as president from 1989 to 1990. LJN attempted to acquire Buddy L during his tenure, but MCA ended the negotiations before announcing that it was selling LJN.[29][30]

Acclaim Entertainment ownership (1990–2000)

[edit]

Acclaim closed LJN's toy division and shifted the company's focus to video game publishing.[31] It fired 45 of the company's 70 employees and moved its headquarters from Lyndhurst, New Jersey to Oyster Bay, New York, the same place as Acclaim's headquarters.[32][33][34]

Lawrence Kanaga filed a lawsuit on behalf of Clark Thiemann on January 31, 1990, against LJN, Nintendo, and Major League Baseball claiming that the game Major League Baseball was falsely advertised to Thiemann stating that it would allow him to simulate being a baseball team manager and Kanaga stating that the game was advertised as having all of the players, but instead only had their uniform numbers.[35] In 1991, the U.S. Consumer Product Safety Commission recalled LJN's Sling 'Em-Fling 'Em wrestling ring toys based on the World Wrestling Federation, which sold 1.4 million products from 1985 to 1989, due to multiple children between six and ten being injured by the toys.[36]

Acclaim closed LJN in 1994, but reused the company's name for the release of Spirit of Speed 1937 in 2000.[37][38]

Games

[edit]
Title Platform(s) Release date Developer(s)
Gotcha! The Sport! Nintendo Entertainment System 1987 Atlus
Jaws
The Karate Kid
Major League Baseball 1988
Town & Country Surf Designs: Wood & Water Rage
Back to the Future 1989 Beam Software
Friday the 13th Atlus
NFL
The Uncanny X-Men
Who Framed Roger Rabbit Rare
The Amazing Spider-Man Game Boy 1990
Back to the Future Part II & III Nintendo Entertainment System Beam Software
A Nightmare on Elm Street Rare
Pictionary Software Creations
The Punisher Beam Software
WWF WrestleMania Challenge Rare
Roger Clemens' MVP Baseball Nintendo Entertainment System
Super Nintendo Entertainment System
Gameboy 		1991 Sculptured Software
Wolverine Nintendo Entertainment System Software Creations
WWF Superstars Game Boy Rare
NBA All-Star Challenge Super Nintendo Entertainment System 1992 Beam Software
Spider-Man and the X-Men in Arcade's Revenge Nintendo Entertainment System Bits Studios
Spider-Man and Venom: Maximum Carnage Super Nintendo Entertainment System Software Creations
Terminator 2 Nintendo Entertainment System
Town & Country II: Thrilla's Surfari Sculptured Software
WWF Superstars 2 Game Boy
WWF Super WrestleMania Super Nintendo Entertainment System
WWF WrestleMania: Steel Cage Challenge Nintendo Entertainment System
Alien 3 1993 Probe Software
Terminator 2 Super Nintendo Entertainment System Bits Studios
WWF King of the Ring Nintendo Entertainment System
Game Boy 		Gray Matter
Eastridge Technology
WWF Royal Rumble Super Nintendo Entertainment System Sculptured Software
Spider-Man and the X-Men in Arcade's Revenge Game Boy 1994 Unexpected Development
Spider-Man and Venom: Maximum Carnage Super Nintendo Entertainment System Software Creations
Wolverine: Adamantium Rage Bits Studios
WWF Raw Super Nintendo Entertainment System
Game Boy 		Sculptured Software
Realtime Associates
Spirit of Speed 1937 Dreamcast 2000 Broadsword Interactive

References

[edit]
  1. ^ "Kirk: LJN". The Record. February 28, 1990. p. E2. Archived from the original on September 13, 2024 – via Newspapers.com.
  2. ^ "A Recap of Industry Headlines, Jack Friedman: July 9, 1939-May 3, 2010". Toys and Family Entertainment, Vol.5, No. 7, June 2010. aNb Media, Inc. June 2010. Retrieved March 30, 2022.
  3. ^ "Business People; Head of LJN Toys Sees Succss Through 'E.T.'". The New York Times. September 15, 1982. Archived from the original on March 20, 2022. Retrieved March 20, 2022.
  4. ^ "Jack Friedman Dies at 70; Toy Maker". Los Angeles Times. May 6, 2010. Archived from the original on September 29, 2021. Retrieved March 20, 2022.
  5. ^ "Toy Companies Using TV Shows As Advertising". Corpus Christi Caller-Times. October 1, 1976. p. 32. Archived from the original on March 16, 2022 – via Newspapers.com.
  6. ^ "Toy Industry Game: Licensing". The Boston Globe. February 19, 1985. p. 64. Archived from the original on March 19, 2022 – via Newspapers.com.
  7. ^ a b "Millions to Toymakers". Lansing State Journal. December 8, 1982. p. 41. Archived from the original on March 16, 2022 – via Newspapers.com.
  8. ^ a b "Buyers Are Going Bananas over Licensed Toys This Year". Palladium-Item. December 7, 1982. p. 9. Archived from the original on March 16, 2022 – via Newspapers.com.
  9. ^ "Are You Ready for Doll Wars?". Press & Sun-Bulletin. December 7, 1981. p. 4. Archived from the original on March 16, 2022 – via Newspapers.com.
  10. ^ "E.T., Phone Your Broker". The Pantagraph. December 12, 1982. p. 433. Archived from the original on March 16, 2022 – via Newspapers.com.
  11. ^ "Small Business Plays Well in Market". The Pantagraph. November 2, 2000. p. 24. Archived from the original on March 16, 2022 – via Newspapers.com.
  12. ^ Brian Volk-Weiss (November 15, 2019), The Toys That Made Us: "Wrestling"
  13. ^ "Rambo and Robots Top Toy Lists for 1986". Sioux City Journal. January 31, 1986. p. 6. Archived from the original on March 19, 2022 – via Newspapers.com.
  14. ^ "MCA Agrees to Acquire L.J.N. Toys : Entertainment Firm to Exchange Up to $39.8 Million in Stock". Los Angeles Times. March 27, 1985. Archived from the original on March 16, 2022.
  15. ^ a b "MCA in Pact with Acclaim". The New York Times. March 13, 1990. Archived from the original on March 20, 2022. Retrieved March 20, 2022.
  16. ^ "Company News; MCA Taking Loss in Sale of Toy Unit". The New York Times. January 23, 1990. Archived from the original on March 20, 2022. Retrieved March 20, 2022.
  17. ^ "Acclaim Says LJN Suit Is MCA's Problem". Chicago Tribune. July 25, 1990. p. 31. Archived from the original on March 21, 2022. Retrieved March 21, 2022 – via Newspapers.com.
  18. ^ "MCA to Take $35-Million Charge in Quarter". Los Angeles Times. June 29, 1988. p. 12. Archived from the original on March 21, 2022. Retrieved March 21, 2022 – via Newspapers.com.
  19. ^ "MCA Sells Stake In Acclaim Inc". Newsday. October 18, 1991. p. 47. Archived from the original on September 1, 2024 – via Newspapers.com.
  20. ^ The Routledge Companion to Adaptation. Taylor & Francis. 2018.
  21. ^ "'Hands On' Approach to Kids' Videos". Wisconsin State Journal. September 3, 1989. p. 132. Archived from the original on March 19, 2022. Retrieved March 19, 2022 – via Newspapers.com.
  22. ^ "Patents; Device Converts TV Set into a Coloring Book". The New York Times. November 5, 1988. Archived from the original on March 19, 2022. Retrieved March 19, 2022.
  23. ^ "LJN". The Record. March 13, 1990. p. C2. Archived from the original on September 1, 2024 – via Newspapers.com.
  24. ^ "Group Criticizes 'Gotcha!' Gun". United Press International. November 17, 1987. Archived from the original on March 16, 2022.
  25. ^ "Company News". The New York Times. June 30, 1988. Archived from the original on March 20, 2022. Retrieved March 20, 2022.
  26. ^ "Realistic Toy Guns Create Worries for Police". The Record. August 12, 1985. p. 9. Archived from the original on March 20, 2022 – via Newspapers.com.
  27. ^ "Realistic Toy Guns Worry Police". The Record. August 12, 1986. p. 8. Archived from the original on March 20, 2022 – via Newspapers.com.
  28. ^ "After 3 Deaths, Realistic Toys Are Under Fire". The New York Times. June 16, 1988. Archived from the original on March 20, 2022. Retrieved March 20, 2022.
  29. ^ "LJN Toys rethinks game plan". The Record. January 10, 1990. p. E1. Archived from the original on September 13, 2024 – via Newspapers.com.
  30. ^ "New worlds to conquer". The Record. February 28, 1990. p. E1. Archived from the original on September 13, 2024 – via Newspapers.com.
  31. ^ "Acclaim and MCA Dispute Final Price in LJN Toys Deal". Newsday. July 6, 1990. p. 45. Archived from the original on March 21, 2022. Retrieved March 21, 2022 – via Newspapers.com.
  32. ^ "Acclaim Buys LJN Toys Ltd. For $30 Million". Newsday. March 14, 1990. p. 45. Archived from the original on September 1, 2024 – via Newspapers.com.
  33. ^ "LJN Toys Relocating To N.Y." The Record. April 24, 1990. p. C3. Archived from the original on September 1, 2024 – via Newspapers.com.
  34. ^ "45 losing jobs at LJN Toys". The Record. April 25, 1990. p. E8. Archived from the original on September 1, 2024 – via Newspapers.com.
  35. ^ "9-Year-Old Sues over Video Baseball Game Boy Says Tape Strikes Out - Wants Nintendo, Major League to Return $40". Deseret News. February 1, 1990. Archived from the original on March 19, 2022.
  36. ^ "LJN "Sling 'Em-Fling 'Em" Wrestling Ring Toy Recalled". U.S. Consumer Product Safety Commission. November 4, 1991. Archived from the original on March 16, 2022.
  37. ^ Carlisle, Rodney (April 2, 2009). Encyclopedia of Play in Today′s Society. SAGE Publishing.
  38. ^ "Hands On: Spirit of Speed 1937". IGN. June 30, 2000. Archived from the original on March 21, 2022. Retrieved March 21, 2022.
Retrieved from "https://en.wikipedia.org/w/index.php?title=LJN&oldid=1255561506"