Gores Technology Group, which purchased the troubled Learning Co. unit from Mattel last year, told Reuters that the game developer is in the black and will generate "material" profits in 2001.
Mattel paid $3.5 billion for the Learning Co. in 1999, but by last year The Learning Co. was losing $1.5 million per day, dragging down Mattel's stock and hastening the departure of Mattel's previous CEO, Jill Barad. Last Fall Mattel all but gave the unit away to Gores, in return for a share of future profits. Since its transfer, over 300 people have been laid off from Learning Co., bringing its workforce to about 1,200 employees.
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