Ex-Sega Exec to Head Troubled Unit of Mattel
Mattel Inc. turned over control of its troubled Mattel Interactive division Monday to Bernard Stolar, a longtime game industry executive who last summer directed Sega of America Inc.’s successful introduction of the Dreamcast console. Stolar abruptly left Sega in August after what industry insiders described as a fundamental disagreement with Sega executives in Japan.
Stolar, 53, has his work cut out for him at Mattel Interactive, which incorporates the Mattel.com Web site, a joint venture with Intel, and product lines associated with Learning Co., a troubled software company that Mattel acquired in 1999 for $3.5 billion. The world’s largest toy company stunned investors late last year by announcing that Learning Co. revenue would be noticeably less than what had been expected.
Two Learning Co. executives who had been running Mattel Interactive left the company in November. Mattel’s share price, which hit a yearly high of $30.31 last April, closed down six cents Monday at $13.06.
In a related announcement Monday, Mattel said that a search is underway for a successor to Harry Pearce, the company’s 55-year-old chief financial officer, who will retire in March.
Stolar, who previously worked at Sony Computer of America and Atari, has a reputation as a hotly competitive and strong-willed executive. In addition to shepherding the 1999 Dreamcast launch, he is credited with helping Sony launch its successful Playstation platform in 1995.
Analysts see a potentially larger role for him at Mattel if he can turn the interactive unit into an industry force. Chairwoman Jill Barad is under the gun to complete a costly restructuring, and rumors are circulating about her future at the company, which has struggled to keep pace in the rapidly changing toy industry.
“If Bernie does well, if he’s able to launch a big product for Mattel Interactive, then he’s going to be well-positioned at Mattel,” said Yobie Benjamin, chief of global strategy for Ernst & Young’s San Francisco-based Internet and e-commerce operations. “This is going to be a pivotal year for the company.”
Early last year, Mattel Interactive, including the Learning Co., generated $1 billion of Mattel’s overall $5.6 billion in revenue. Figures for 1999 are not available.
Stolar’s immediate challenge will be to restore order at Mattel’s Learning Co. operation and to help Mattel shape an image for its still-evolving Web site. Mattel also must find profitable ways to turn such famous real-world brands as Barbie and Hot Wheels into interactive and online products.
Longer-term challenges include leveraging the company’s reputation as a children’s toy manufacturer.
Stolar is credited with orchestrating last year’s $100-million marketing blitz behind the Dreamcast console introduction. Dreamcast generated an estimated $111 million in retail sales during its first three days on the market.
