Wondering it's early, one thousand nine hundred and eighty one and inside Hasbro's offices in Pawtucket RI two men are waiting nervously in the corridor outside the company's auditorium inside CEO, Stephen Hassenfeld is reviewing new product ideas, and these two executives are due to pitch their latest concept any moment now that order of the two looks up at his tall broad shouldered colleague. Is this a good idea? I mean this, isn't just any old toy. It's got emotional baggage. Larger man shrugs as he puts on a green army jacket. Well, it's too late! Now, that's my cue. Don't forget this. The large man takes a steel pot helmet from his colleague and pulls it down over his head. So how do I look like muscle, Lini's long lost brother screw you and we,

the man of the helmet, an army jacket into the auditorium he the lectern. It stands to attention. The lights are dimmed, but he can g. Just about make out Hassenfeld's mop of curly, hair and big glasses. He saw Is the ceo and starts the pitch commit you're? The enemy has is surrounded, but we shall never surrender. We shall fight, but and we are to win this war commander, we're going to a hero, a real army, chicken gyro, we're going to need GI, Joe theatrics over. He had off the presentation to his fellow Hasbro executives, who explained why company should resurrect Gi Joe Joe's been missing in action since seventy eight following his ill fated phase as a superhero. Since then, the Ohio, homemaker Kenner has captured all

most all of the action figure market with its star wars, dolls, but they had pro team reckons it's time to strike back Ronald Reagan's just entered the White House and patriotism is back in vogue. Also, there won't the New STAR Wars movie in nineteen. Eighty two now their chance to make inroads before star wars. Fever returns, the team. Cases for their ceos reaction. Hassenfeld doesn't pull punches in these meetings and today is no exception. I'm not approving You have no hook star wars has a hook. It's got a movie, I'm giving you a two out of ten ouch in fasten tells world anything below. Eight is unacceptable. One of the executives leaps to his feet. All now you keep saying grow. The business grow the business, but then you eject every idea. We have you, keep that shit. Well, I'm quitting

yes and fell leans back in his chair, he's torn Gi Joe holds a special place in his heart, his phone mother helped introduce the groundbreaking toy, but he doesn't want to let sentimentality cloud his decision. Fine, you have two weeks to craft a pitch worth my time. The team is surprised by their stay of execution, but now that pressures really on they've only got two two weeks to save Gi Joe here it business wars. We make shows that we hope entertain you, but we'd love it. If you learn something too, opening myself up to learning more about the world is one of the reasons that I listen to my favorite podcasts, and it also why I love reading the economist. The economist is a weekly magazine that off

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Ninety nine thousand again, that's a free print copy of the economist, and all you have to do is text business wars. All one word, two hundred and ninety nine thousand Hey it's David Brown with some really exciting news. You can now listen to our back catalog and new episodes of the show completely ad free on Stitcher. You can sign up now for a free month of stitcher premium by going to yourpremium dot com, slash wondering and using the promo code wondering.

From wondering I'm David Brown- and this is business wars episode, Mattel got Caught- play, make believe with its accounts, while Hasbro's struggle to survive the 70s. Now it's the early, 80s and Mattel's back on track. It shaken off its books, cooking cattle and plugged into the new video game craze. It's home video games console the in is deliver hundreds of millions of dollars in sales. Every year, Hasbro Chief, Stephen Hassenfeld can only watch with envy has cannot forward to get into video games, so instead

he's hunting for a toy that can revive his company's fortunes. This is episode four resurrection, Joe the Hasbro Boys team is back in front of Hassenfeld after a two week scramble to redo their botched GI, Joe Pitch. They know today. Is there final chance to revive the company's iconic soldier, Doll, hasn't l settled in his chair, and so as for them to start the team dim the lights, but today there are no theatrics just advertising chief Joe a a slide projector. You are right, we don't have a movie, we something better. He clicks to the first slide mock up of a GI, Joe Comic book. We got a marvel comic. It will tell

the story of GI, Joe and elite peacekeeping force that defends the world from the terrorist group cobra, we're going to give marvel the entire Gi Joe ad budget, so they can promote the comic using animated tv ads. The comic Those commercials will reach way more kids than star wars, because kids can only see star wars when it's in theaters that's our hook. The team. Waits for has response, but he says nothing. So they turn up the lights. Tyson fell at the back of the room. Are those tears welling up in his eyes? Finally, he speaks. I wish my father was a law to see this. I'm going to the cemetery to tell him Gi Joes back and with that Hassenfeld leaves the room

but Hasbro's, not the only toymaker plotting to take on star wars. Three thousand miles away in LOS Angeles Matels, also preparing an assault on the action figure market for Mattel, challenging star wars. Isn't just about money. It's about pride to in nineteen. Seventy seven, the company turned down the rights to star wars. Half am in dollars to make toys for a no name movie from a little known director. I'd like a really dumb idea back. Then companies been ruling that decision ever sense, but now Mattel thanks. It has a star wars, killer a line. Ical action figures called the masters of the universe, but wants to be sure about its new idea before starting production, and that's why

it's invited toys r us to it's LA headquarters for a preview. As the toys, r US buyer watches until Mattel vice President Mark, this introduces the figures lined up on the meeting rooms table. Each one is locked in a ready to fight pose. He grabs an improbably muscular barbarian with blonde hair. This is he man he's the hero and the most powerful man in the universe. Next Ellis grabs, blue skin beefcake, with a skull face and research, and then is he man's arch enemy skeletal. Now let me show you what makes some really special after placing two figures nose to nose on the table. He pulls back man's right arm, causing the figures torso to swivel round, then Ellis, let's go and how he man snapped back into place in his clenched fist slammed into Skeletor singing the evil. One flying that's the power

or kids will go nuts for this next Ellis and the buyer a pocket sized comic book weeks ago. This comic didn't exist, but after the first toy complained, there was nothing to explain the characters. Mattel quickly created this illustrated guide. Every figure will come with these comics, which will tell the masters of the universe story. The buyer looks puzzled. I thought you said these were for five year olds. Well, five year olds, don't read that uses. A comic Ella feels a surge of panic. Toys. R us can't reject masters of the universe there too big of a chain, so he improvises hi. I forgot to mention the animated tv show the man from Toys- r US leaves happy, but now, but it's got a tv show to make it teams up with a car in studio. The animated series won't be ready for almost two years until then,

the man's going to have to battle GI, Joe without TV back up in early one thousand, nine hundred and eighty two Hasbro and old rival action figures arrive in stores and both the new line sell fast, Mattel's muscle, bound figures, gross almost forty million dollars that year double what the company expected, but they're no match for Hasbro's GI, Joe with the hell of the tie in Marvel Comic it rakes in fifty million dollars, but then in timber. One thousand nine hundred and eighty three Mattel's he man, car moon, hits the air. Please call does have the power boosted by it. The tv show mash of the universe, sales rocket past the hundred million dollar a year Mark Hasbro quickly

follow suit and launches a tv show to promote its latest bid for toys supremacy, but even as the to giant Duke it out for kids, eyeballs Mattel is hitting the skids and then because Mattel's video game dream has become a nightmare. The early eighties US video game boom has just gone bust, a bust, because my massive discounting by over exuberant retailers, who ordered way more video games than consumers want it. Now home video game sales are in freefall, plunge from a three billion dollar a year business to a puny one hundred million dollar business. Ashe pushes almost every company involved in video games to the edge of ruin and is one of the His players in video games tell is, among those hit hardest

in nineteen. Eighty three, the company's video game operations deliver more than four hundred million dollars in losses. It's a lost big enough push Mattel to the verge of bankruptcy. But it's far from the only toy maker to get burned by the video game crash. It's April, one thousand nine hundred and eighty four in Springfield Massachusetts. The Milton Bradley Company is in trouble the company's been Allen for close to one hundred and twenty five years, making top board games like life, candyland, land and battleship. Then last year it launched its first home video game console. It sank the resulting losses of left Milton Bradley, vulnerable Reddit conglomerates are circling, sucking up it's stock and preparing hostile takeover bids. In his wood paneled office, Milton Brad, the chairman James Shea, and his marketing chief

baiting how to fend off the corporate vultures. We've got protect the company? I cannot bear the idea of us ending up part of some faceless conglomerate like that that br, one Hanson. Yes, they made bricks, run clothes stores and who knows what else? They probably don't even know. I think we need start buying back our stock, but that make us more vulnerable. It would drain our cash reserves. Your if I take this sure she hits the speakerphone, but James Shea Senior Hi James Stephen House, fell from Hasbro. No, I will keep you I just wanted to, let you know what with everything that's going on. For you that that, if you need a White Knight will I'm here? Oh ok,

ok well. Thank you, Steve and I'll. Let you know shake cuts the call and pulls a face. Can you believe that Steve and Hassenfeld wanting to be our white knight who Do you think he is Hasbro was broke a couple years back, but Milton sadly, situation only gets worse after realizing, he can't save the company from a takeover shay. She swallows his pride and calls Hassenfeld huh, Enfels, delighted and relieved. He hoped his white Knight offer would pay off, but until this moment he had no way of knowing. If the plan would work, Hasbro buys Milton Bradley. It's a deal that instantly allows Hasbro to leapfrog Mattel and become the world's biggest toy company, but hasn't fields, not the only one making deals in July. One thousand nine hundred and eighty four Mattel secure a life saving deal a2.

One hundred million dollar cash infusion from a team Wall Street finance ears, bankruptcy, averted, Mattel, goes back to basics, it awful foods, its troubled, video game, division in a fire, sale and re focuses on toys and the Good NEWS is Mattel's. Toys are thriving masters of the universe. Figures are selling like crazy and barbies bigger than ever Arby's back in the limelight, thanks to an overhaul of her business model instead of in trading on selling clothes for the doll tell is now encouraging girls to buy multiple dolls by releasing themed barbies with exclusive outfits. Now there are multiple types of barbies from shoulder: padded woman, Barbie, two fashion jeans Barbie, with her pink mohair sweater and Blue Denham. Barbie

ads are also tuning into the rising status of women in the workplace. You know it, and so does your little girl in do anything right Barbie, but Hasbro's got greedy eyes on barbies bumper profits. Yet secretly working on a doll for the MTV age, she's called jam, she's got bushy, pink, hair and fronts. A rock band called the holograms gems. Even got a bunch of rock rivals called the misfits who are going. Give Hasbro's doll. The perfect story line for a tv cartoon has reckons Jim is going to blind side Mattel when she debuts at Toy Fair in February, one thousand nine hundred and eighty six, but what the company doesn't know is the the tail is already onto its secret plan. Not every day in the office is full of secret plans and make her break pitches a lot.

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these business travel today with trip actions just go to trip dot com, Slash Bw delete a thirty minute demo with a trip actions account executive and you'll, get a one hundred dollars, Amazon Gift Card, but here's the catch it's for this month only trip turns dot com, Slash Bw for a free demo and one hundred dollar Amazon Gift Card, tripactions, dot, com, Slash, Bw,. It's October, nineteen. Eighty five, in Barbie Marketing, Director Gilbert Odd, is holding a strategy meeting with her team is a rising star at Mattel, an executive with uh hi for trends, move star, looks and a will

power. That's making her ascent up the ranks unstoppable. Suddenly her pager starts buzzing. Mariah glances at the message it's from her boss, Barbie Chief Judy shackled, the message reads: drop everything urgent meeting in my office. I have to go. Barade puts on her bubble gum, pink shell suit jacket and heads to Shackleford's corner office. When she arrives the rest Barbie's top team is already there. Shackleford brings every run up to speed. I've had a tip off Hasbro's, going to launch a fashion doll called Jim at Toy fair. It's going to Rock STAR Doll, Marad breaks and broad smile got pop star barbie in the works. We can fast track. It get ready to show at Toy Fair. That's what I'm thinking but but more than that, I want rockstar barbie in stores before jam. Let's make

look like Hasbro's copying us plan in place. Mattel moves like lightning. Normally it takes eighteen months for a toy go from prototype to store shelf but spurred on by the threat from Hasbro Mattel, Dalih pop star Barbie to market. In just five months and in March one thousand nine hundred and eighty six lead singer Barbie and her band. The rockers arrive in stores complete with big hair instruments and microphones, and he play tv advertising two months later follows with her own barrage of tv ads.

It's too little too late, though matels they strike derails gems bid for stardom by the end of the year gems, already headed for the. Where are they now file? Not that Hasbro chief, Stephen Hassenfeld's, giving up on fighting barbie and in nineteen? Eighty eight? He it's on a new attack strategy. A few years earlier, Hasbro bought the rights to a british doll called Cindy. She might lack barbies California glamour since her debut in one thousand. Nine hundred and sixty eight Cindy's in a serious challenger to Barbie in the UK and now hasn't world wants to use her to defeat bar in all markets outside North America. But first she needs a bit of plastic surgery. Hasbro orders a makeover, give Cindy a more angular face, son and a nose job, all pink packaging, morph,

simple clothes and smile by the time Hasbro's designers are done. Cindy looks a lot more. Like Mattel's material girl, Ann, that's got Mattel Snowy Haired, CEO John Ammerman, worried he he's growing barbie sales outside the US, as is critical to Mattel's future now. Transformation of Cindy is poised to torpedo that plan. So when Toy Fair comes around in February, one thousand nine hundred and eighty nine ammerman invites him then fell to his Manhattan hotel, Ste, four one to one as he felt enters the sweet. The two rivals I each other warily, how listen failed, looks thinner than Ammerman remembers, but it's like the two cross pads often stay, but thanks for coming, please take Asi nice sweet. So what's this all about, I want to

talk to you about sending Hassenfeld folds his arms. What about her new? Look that the pink packaging it's indistinguishable from Barbie? I don't want you to go ahead with her as he is cindies. An original she's, no bar the clone, Amor who's afraid hasn't. Tell would react like this Steven, I'm trying to settle this amicably. Look. The new Cindy is going ahead. No, that tells me what to do least of all you hi. This meeting is over making a mistake. Steven Hassenfeld glances at Ammerman in then walks out. Fine thanks, Ammerman, no more mister, nice guy. He AL's Mattel's lawyers and orders them to strangle Cindy with red tape, bury her in lawsuits that spring as Hasbro Start shipping. The new Cindy across Europe, Mattel

his attorneys strike in country, app your country, Mattel files, accusations of copyright, infringement counterfeiting and unfair competition. In some countries it even persuades customs officials to impound Cindy shipments, but and as the lawsuits pile up Hasbro's attentions are elsewhere. It's may one thousand. Nine hundred and eighty nine in Hassenfeld been rushed to a New York City Hospital. He might be. The Claimed boss of a fortune five hundred company, but he spent his life, fearing that his career would be destroyed if sexuality ever became public. Fears that only deepened after he was diagnosed with HIV with effective HIV treatments still years away. The diagnosis feels like a death sentence and despite his boyfriends, please

Stephen Hassenfeld refuses to tell his family for Alan Steve, younger brother, in Hasbro international boss. The truth only becomes clear: he sees the precaution sign outside the hospital room. Yet, even now on his deathbed bed, even Hassenfeld won't open up. Instead, he wants to hear how talks to get the rights to produce cabbage patch dolls are going out, leave the hospital hoping that tomorrow he and his brother will talk, but that tomorrow never comes that night hasn't filled slips into a coma, and a month later, the man took Hasbro to the very top of the toy industry dies on the next episode, Alan Hassenfeld stepson easily into his brother shoes

war breaks out over scrabble and a resurgent Mattel makes a marriage proposal. This is business wars hope you enjoyed this episode and we invite you to subscribe on Apple podcasts, Spotify, Google, podcast stitcher Iheartradio for every you're. Listening right now find a link on the episode notes, just tap or swipe over the cover. Art you'll also see some offers from our sponsors and we hope you'll support our show by supporting them. Hey. If you like, what you've heard, we would love it if you give us a five star rating and tell your friends how to subscribe, to there's and where you can support us and that, by going over to wondering dot com, slash survey, can just answer a few questions there and don't forget to tell us what business war stories you'd like to hear. We should

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