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Mattel CEO seeks answers
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October 8, 1999: 7:09 a.m. ET
Report: Barad doesn't know why Learning Co. unit lost up to $100M
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NEW YORK (CNNfn) - Mattel's chief executive has told the toymaker's board that she doesn't know why the recently acquired Learning Company software unit posted a loss of up to $100 million, the Wall Street Journal reported Friday.
Jill Barad is already under pressure to account to shareholders for the disappointing news Monday that Mattel would fall far short of earnings targets for the third quarter by as much as 55%, the Journal reported.
Although a spokesman for the company told the paper that Barad still has the support of the board, Mattel stock has fallen precipitously under Barad's leadership, from $46 in spring 1998 to Thursday's closing price of $12.3125.
Mattel's acquisition of Learning Company -- a leading publisher of educational and children's software -- earlier this year for $3.5 billion had been criticized from the start, the Journal said, and it remains to be seen if sufficient explanation can be found for the breathtaking revenue shortfall at the unit.
Barad claims that Learning Co. division heads Michael Perik and Kevin O'Leary had not apprised her of the extent of the trouble, according to the paper, which was unable to reach Perik and O'Leary for comment.
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