Mattel 1998 Annual Report Download - page 11

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software for new platforms including Sony Playstation and
Nintendo’s Game Boy.
Deepening our entry into technology, we entered into a rela-
tionship with Intel last year. I am very proud of the products
that have been developed through that partnership. The mis-
sion of our alliance has been to create PC-related products
that allow children to see and do things they have never
done before. We’re delivering on that mission, with the X3
Microscope and the Me2Cam, which are being heralded as
two of the most innovative new products of 1999. They will
launch in the second half.
Mattel Media and Intel have given us a strong
position in the interactive arena, but it made
great sense for us to seek out a partner to
help us realize our $1 billion goal. The only
company that met all the criteria we
established was The Learning Company.
We announced our proposed merger
with The Learning Company in
December. This merger will provide
Mattel with tremendous opportunities
for synergies, cross branding, age
expansion, consumer relevancy
and channel expansion. The Learning
Company holds the #1 market share for
both education software and productivity
software, the #2 position for reference,
and the #3 ranking for entertainment.
After the merger’s completion, we will
become the second largest consumer software
company in the world, second only to Microsoft.
Our third initiative is to build a $1 billion direct-to-consumer
business. We have nearly $500 million in direct sales today,
most of it through catalogs, and we will have catalogs for
all of our key brands available in the second half of the year.
But the real opportunity in direct marketing is through an
Shopping online for Mattel products will be 9
offered through Mattel.com.