1.7 Mattel, a major US toy manufacturer, virtually gave away The Learning Company (TLC), a maker of...

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1.7 Mattel, a major US toy manufacturer, virtually gave away The Learning Company (TLC), a maker of software for toys, to rid itself of a disastrous acquisition. 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 a related or unrelated diversification for Mattel? Explain your answer. (Appendix)

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