Mattel, a major U.S. toy manufacturer, virtually gave away The Learning Company (TLC), a maker of software

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Mattel, a major U.S. toy manufacturer, virtually gave away The Learning Company (TLC), a maker of software for toys, to rid itself of a disastrous acquisition that actually had cost the firm hundreds of millions of dollars. Mattel, which had paid $3.5 billion for TLC, sold the unit to an affiliate of Gores Technology Group for rights to a share of future profits. Was this related or unrelated diversification for Mattel? Explain your answer. How might your answer to the first question have influenced the outcome?

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