LJN explained

LJN Toys Ltd.
Type:Subsidiary
Industry:Video games
Fate:Dissolved
Founder:Jack Friedman
Hq Location City:New York City
Hq Location Country:US

LJN Toys Ltd. was an American toy company and video game publisher based in New York City. Founded in 1970 by Jack Friedman, the company was acquired by MCA Inc. in 1985, sold to Acclaim Entertainment in 1990, and dissolved in 1994. The toy division of the company was closed by Acclaim and the company shifted towards video game publishing before being closed in 1994. The company's branding was last used for the release of Spirit of Speed 1937 in 2000.

The brand was revived in 2018 with the formation of LJN Toys, LLC, with Ringside Collectibles making exclusive figurines of The Young Bucks in 2019.[1] Jazwares would also use the branding on its All Elite Wrestling toy line, from 2021.[2]

History

Early history (1970–1985)

Jack Friedman founded LJN in 1970 using funds from his employer Norman J. Lewis Associates (from which the company name "LJN" is derived, being a reversal of Lewis' initials)[3] after seeing the sale figures of Mattel and Milton Bradley Company increase.[4] Friedman later founded THQ and Jakks Pacific after leaving LJN.[5] LJN shifted money used for television advertising to instead purchase licenses to make toys based on television shows.[6] The first toyline by LJN based on a television show was for Emergency![7] The highest amount the company paid for a license by 1982 was $250,000.

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] [9] [10] [11] [12]

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.

LJN competed with Mattel in the toy market. The company produced the ThunderCats toyline in competition with Mattel's Masters of the Universe.[13]

MCA ownership (1985–1990)

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] LJN had a revenue of $110,510,000 and a net loss of $37.3 million in 1987.[17]

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.[18] The company released the LJN Video Art in 1987.[19] [20] The majority of the company's $70 million in sales in 1990 came from video game sales on the Nintendo Entertainment System and Game Boy.[21]

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.[22] 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.[23] 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.[24] [25] [26]

Acclaim Entertainment ownership (1990–2000)

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.[27]

Acclaim closed LJN's toy division and shifted the company's focus to video game publishing.[28] 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.[29]

Acclaim closed LJN in 1994, but reused the company's name for the release of Spirit of Speed 1937 in 2000.[30] [31]

LJN Toys, LLC. (2018–)

The LJN brand was revived again in 2019 by Ringside Collectibles releasing an exclusive twin pick of figures of The Young Bucks, and then by Jazwares for its All Elite Wrestling Unmatched line of action figures.[32] [33] The LJN-style figures resemble the Wrestling Superstars of the 1980s.[34]

Notes and References

  1. Web site: Figures . Ringside . 2019-03-07 . LJN . 2024-07-18 . Ringside Figures Blog! . en-US.
  2. Web site: 2021-07-17 . AEW Announce First LJN Action Figures Since 1989 . 2024-07-18 . itrwrestling.com . en-GB.
  3. . June 2010 . A Recap of Industry Headlines, Jack Friedman: July 9, 1939-May 3, 2010 . March 30, 2022 . Toys and Family Entertainment, Vol.5, No. 7, June 2010 . aNb Media, Inc..
  4. News: September 15, 1982 . Business People; Head of LJN Toys Sees Succss Through 'E.T.' . live . https://web.archive.org/web/20220320041219/https://www.nytimes.com/1982/09/15/business/business-people-head-of-lnj-toys-sees-success-through-et.html . March 20, 2022 . March 20, 2022 . The New York Times.
  5. News: May 6, 2010 . Jack Friedman Dies at 70; Toy Maker . live . https://web.archive.org/web/20210929092848/https://www.latimes.com/archives/la-xpm-2010-may-06-la-me-jack-friedman-20100506-story.html . September 29, 2021 . March 20, 2022 . Los Angeles Times.
  6. News: October 1, 1976 . Toy Companies Using TV Shows As Advertising . live . https://web.archive.org/web/20220316070419/https://www.newspapers.com/clip/97725192/corpus-christi-caller-times/ . March 16, 2022 . . 32 . Newspapers.com.
  7. News: February 19, 1985 . Toy Industry Game: Licensing . live . https://web.archive.org/web/20220319063335/https://www.newspapers.com/clip/97921155/the-boston-globe/ . March 19, 2022 . . 64 . Newspapers.com.
  8. News: December 7, 1982 . Buyers Are Going Bananas over Licensed Toys This Year . live . https://web.archive.org/web/20220316065900/https://www.newspapers.com/clip/97724972/palladium-item/ . March 16, 2022 . . 9 . Newspapers.com.
  9. News: December 8, 1982 . Millions to Toymakers . live . https://web.archive.org/web/20220316065505/https://www.newspapers.com/clip/97725035/lansing-state-journal/ . March 16, 2022 . . 41 . Newspapers.com.
  10. News: December 7, 1981 . Are You Ready for Doll Wars? . live . https://web.archive.org/web/20220316070157/https://www.newspapers.com/clip/97725159/press-and-sun-bulletin/ . March 16, 2022 . . 4 . Newspapers.com.
  11. News: December 12, 1982 . E.T., Phone Your Broker . live . https://web.archive.org/web/20220316070835/https://www.newspapers.com/clip/97725226/the-miami-herald/ . March 16, 2022 . . 433 . Newspapers.com.
  12. News: November 2, 2000 . Small Business Plays Well in Market . live . https://web.archive.org/web/20220316064502/https://www.newspapers.com/clip/97724885/the-pantagraph/ . March 16, 2022 . . 24 . Newspapers.com.
  13. News: January 31, 1986 . Rambo and Robots Top Toy Lists for 1986 . live . https://web.archive.org/web/20220319064008/https://www.newspapers.com/clip/97921332/sioux-city-journal/ . March 19, 2022 . . 6 . Newspapers.com.
  14. News: March 27, 1985 . MCA Agrees to Acquire L.J.N. Toys : Entertainment Firm to Exchange Up to $39.8 Million in Stock . live . https://web.archive.org/web/20220316073228/https://www.latimes.com/archives/la-xpm-1985-03-27-fi-20221-story.html . March 16, 2022 . Los Angeles Times.
  15. News: January 23, 1990 . Company News; MCA Taking Loss in Sale of Toy Unit . live . https://web.archive.org/web/20220320043118/https://www.nytimes.com/1990/01/23/business/company-news-mca-taking-loss-in-sale-of-toy-unit.html . March 20, 2022 . March 20, 2022 . The New York Times.
  16. News: July 25, 1990 . Acclaim Says LJN Suit Is MCA's Problem . live . https://web.archive.org/web/20220321010208/https://www.newspapers.com/clip/98045799/chicago-tribune/ . March 21, 2022 . March 21, 2022 . . 31 . Newspapers.com.
  17. News: June 29, 1988 . MCA to Take $35-Million Charge in Quarter . live . https://web.archive.org/web/20220321003428/https://www.newspapers.com/clip/98045694/the-los-angeles-times/ . March 21, 2022 . March 21, 2022 . . 12 . Newspapers.com.
  18. Book: The Routledge Companion to Adaptation . 2018 . Taylor & Francis.
  19. News: September 3, 1989 . 'Hands On' Approach to Kids' Videos . live . https://web.archive.org/web/20220319212800/https://www.newspapers.com/clip/97921981/wisconsin-state-journal/ . March 19, 2022 . March 19, 2022 . . 132 . Newspapers.com.
  20. News: November 5, 1988 . Patents; Device Converts TV Set into a Coloring Book . live . https://web.archive.org/web/20220319215047/https://www.nytimes.com/1988/11/05/business/patents-device-converts-tv-set-into-a-coloring-book.html?searchResultPosition=33 . March 19, 2022 . March 19, 2022 . The New York Times.
  21. News: March 13, 1990 . MCA in Pact with Acclaim . live . https://web.archive.org/web/20220320042652/https://www.nytimes.com/1990/03/13/business/mca-in-pact-with-acclaim.html . March 20, 2022 . March 20, 2022 . The New York Times.
  22. News: November 17, 1987 . Group Criticizes 'Gotcha!' Gun . live . https://web.archive.org/web/20220316073139/https://www.upi.com/Archives/1987/11/17/Group-criticizes-Gotcha-gun/5494564123600/ . March 16, 2022 . United Press International.
  23. News: June 30, 1988 . Company News . live . https://web.archive.org/web/20220320042236/https://www.nytimes.com/1988/06/30/business/company-news-861788.html . March 20, 2022 . March 20, 2022 . The New York Times.
  24. News: August 12, 1985 . Realistic Toy Guns Create Worries for Police . live . https://web.archive.org/web/20220320041955/https://www.newspapers.com/clip/97921885/the-record/ . March 20, 2022 . . 9 . Newspapers.com.
  25. News: August 12, 1986 . Realistic Toy Guns Worry Police . live . https://web.archive.org/web/20220320042058/https://www.newspapers.com/clip/97921889/the-record/ . March 20, 2022 . . 8 . Newspapers.com.
  26. News: June 16, 1988 . After 3 Deaths, Realistic Toys Are Under Fire . live . https://web.archive.org/web/20220320041732/https://www.nytimes.com/1988/06/16/garden/after-3-deaths-realistic-toys-are-under-fire.html . March 20, 2022 . March 20, 2022 . The New York Times.
  27. News: February 1, 1990 . 9-Year-Old Sues over Video Baseball Game Boy Says Tape Strikes Out - Wants Nintendo, Major League to Return $40 . live . https://web.archive.org/web/20220319061414/https://www.deseret.com/1990/2/1/18844093/9-year-old-sues-over-video-baseball-game-br-boy-says-tape-strikes-out-wants-nintendo-major-league-to . March 19, 2022 . Deseret News.
  28. News: July 6, 1990 . Acclaim and MCA Dispute Final Price in LJN Toys Deal . live . https://web.archive.org/web/20220321010251/https://www.newspapers.com/clip/98045939/newsday-nassau-edition/ . March 21, 2022 . March 21, 2022 . . 45 . Newspapers.com.
  29. News: November 4, 1991 . LJN "Sling 'Em-Fling 'Em" Wrestling Ring Toy Recalled . live . https://web.archive.org/web/20220316072747/https://www.cpsc.gov/Recalls/1991/ljn-sling-em-fling-em-wrestling-ring-toy-recalled . March 16, 2022 . U.S. Consumer Product Safety Commission.
  30. Book: Carlisle, Rodney . Encyclopedia of Play in Today′s Society . April 2, 2009 . SAGE Publishing.
  31. News: June 30, 2000 . Hands On: Spirit of Speed 1937 . live . https://web.archive.org/web/20220321010120/https://www.ign.com/articles/2000/07/01/hands-on-spirit-of-speed-1937 . March 21, 2022 . March 21, 2022 . IGN.
  32. Web site: Figures . Ringside . 2019-03-07 . LJN . 2024-07-18 . Ringside Figures Blog! . en-US.
  33. Web site: 2021-07-17 . AEW Announce First LJN Action Figures Since 1989 . 2024-07-18 . itrwrestling.com . en-GB.
  34. Web site: Zahn . James . June 1, 2021 . Jazwares Unleashes AEW Wrestling Buddies Plush, Unmatched, and Unrivaled Collection Action Figures . 9 October 2022 . The Toy Book.

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