In mid-December 1998, Mattel and The Learning Company announced a definitive agreement to merge the two companies. Pending approval by the Securities and Exchange Commission (SEC), the merger should be finalized this March. The year 1998 was a tumultuous year of market consolidation in the consumer software arena. Yet, despite the seemingly crazy developments of 1998, few would have guessed that one of the largest producers and acquirers of consumer software would be in turn acquired by a toy mogul. This Perspective examines Mattel's strategy in the market and how it may affect other consumer software vendors in the market.
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