Maybe, they wanted it make it more stronger due to this news:
The Learning Company, Inc. Begins Integration of Broderbund Operations
Staff Reductions of 500 and Facility Consolidation Expected to Result in Annual Cost Savings of $50 million
CAMBRIDGE, Mass., Sept. 11 /PRNewswire/ -- The Learning Company, Inc. (NYSE: TLC - news) today announced that it has begun the process of integrating Broderbund Software, Inc. into its organizational infrastructure. This integration is the first step in the company's three-tier strategy to restore the Broderbund brand to industry prominence and profitability by reducing operating costs, expanding channel distribution and leveraging development synergies to cost-effectively extend product lines.
The integration program will include staff reductions of approximately 500 employees and consolidation of certain facilities. These reductions are primarily centered in Broderbund's manufacturing facility in Petaluma, CA and its Novato, CA operations. The reduction in work force and consolidation of facilities is expected to result in annualized cost savings of approximately $50 million per year. Severance charges of approximately $15 million are expected to be included with other one-time restructuring related costs to be expensed in the company's third quarter 1998 results.
Broderbund's impressive portfolio of evergreen software brands will be consolidated under the two main Learning Company business units: education brands into the Learning Division, and productivity, reference and entertainment brands into the Mindscape Division. Broderbund's manufacturing and service operations located in the Petaluma, CA are expected to be closed in mid-November 1998 and transitioned into Learning Company's existing manufacturing and fulfillment operations. As a result the company expects to achieve fulfillment efficiencies and cost savings from a larger scale operation. The Learning Company also expects to consolidate its multiple Novato facilities into one location.
''The integration of Broderbund into The Learning Company organization is a key element in our long-term strategy to be the leading provider of consumer software for the entire family,'' said Michael Perik, Chairman and Chief Executive Officer of The Learning Company. ''We will achieve our objective by increasing distribution in all channels -- retail, school, direct response, OEM and international. The result: we expect to double Broderbund's educational market share, while improving the profitability and contribution of its well-known award winning brands like Carmen Sandiego, Family Tree Maker, Arthur, KidPix and The Print Shop. By integrating the business units, we will also be able to leverage development synergies to cost-effectively extend product lines as well as reduce translation and localization costs, further improving our ability to move Broderbund titles into international markets.''
This release contains information forecasting the results of the company after the acquisition of Broderbund, which are ''forward-looking statements'' under the federal securities laws. Actual results could differ materially from those forecasts and there can be no assurance that results will be achieved. Important factors that could cause actual results to differ materially from those present or estimated include: the company's ability to predict the revenues and profit it will generate from the sale of Broderbund's
product line; the ability to predict with certainty the time and resources
necessary to develop and introduce new products; the ability to predict the
effect of any integration activities on the operation, the effects of general
economic conditions; and the ability to achieve economies of scale and revenue
growth from the acquisition.
The Learning Company, Inc. (NYSE: TLC - news) is one of the country's leading developers of consumer software for the entire family. The company publishes some of the best-known education, reference, personal productivity and family entertainment brands in the U.S., including Reader Rabbit, The Oregon Trail, Sesame Street, Mavis Beacon, Princeton Review, National Geographic, Compton's, PrintMaster and Chessmaster. The company's products are sold in more than 23,000 retail stores in North America and through multiple distribution channels including school sales, on-line, direct response and OEM. The Learning Company also develops, publishes and distributes products internationally through subsidiaries in France, Germany, the United Kingdom, Holland, Japan and Australia, and with distributors throughout Europe, Latin America and the Pacific Rim. The Company's headquarters are located at One Athenaeum Street, Cambridge, Mass. 02142.
NOTE: All trademarks are the property of their respective owners.
SOURCE: The Learning Company, Inc.
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