Acquisitive Learning Co. Buys Another Small Niche Software Maker
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NEW YORK -(Dow Jones)- The Learning Co., which makes educational and
entertainment software, will buy privately held Palladium Interactive in
a small transaction, the San Francisco Chronicle reported Tuesday.
Although Palladium is best known for its Parroty line of spoof
products including Pyst, Microshaft Winblows and Star Warped, the
Chronicle said it no longer makes those CD-ROMs. It now focuses on
genealogy software and products based on the public television show
"Wishbone" and the magazine "Highlights for Children." Palladium had
revenue of about $20 million this year.
Learning (TLC) has been on an acquisition spree. Most significantly,
it paid about $300 million in stock to acquire Broderbund Software Inc.
- best known for its "Carmen Sandiego" educational-software programs and
for the games "Myst" and "Riven."
Learning is competing with Cendant Corp. for leadership of the
rapidly consolidating educational-software industry. Size will be key to
survival in the consumer software market, where many analysts predict
only a few major players will exist at the turn of the century. Wall
Street has sometimes battered shares of Learning, concerned about heavy
debt, a slowdown in sales and brutal competition.
Fans say Learning's business is bound to expand because computers are
getting cheaper and parents want to give their kids a leg up at school.
Furthermore, Learning's supporters say, the company has a strengthening,
diversified product line.
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