In 1985,
MCA Inc.,[SUP]
[6][/SUP] which had been actively acquiring companies in the mid-1980s,[SUP]
[5][/SUP] acquired LJN for $66[SUP]
[6][/SUP] or $67 million[SUP]
[7][/SUP] in an effort to retain more profits from the merchandising of its film properties.[SUP]
[8][/SUP]
LJN began publishing video games for the
Nintendo Entertainment System in 1987. Although this was LJN's first foray into the video game business, it was not for MCA who had previously started MCA Video Games, as a joint venture with
Atari, Inc., to create coin-operated and home games and computer software based on various MCA properties.[SUP]
[9][/SUP]
In 1988, LJN acquired Italian toy company Al'es from the Fassi family.[SUP]
[10][/SUP]
In 1989, MCA decided to sell LJN after years of losses[SUP]
[6][/SUP] since 1987 when fallout surrounding toy guns made by LJN's
Entertech division plunged MCA's profits 79.5% in the second quarter of that year.[SUP]
[8][/SUP][SUP]
[11][/SUP]
MCA finally agreed to sell to Acclaim Entertainment in March 1990 for cash and Acclaim common stock for 30 to 50 percent.