Editor’s Note: A story in the August 8 issue headlined “Play Maker” misstated MGA Entertainment’s sales last year. The company had approximate retail sales of $1.2 billion last year.
MGA Entertainment Chief Executive Isaac Larian arrived in Los Angeles from Iran in 1971 at the age of 17 with just $750 and a yellow blanket. He got a job washing dishes at Spires coffee shop in Lawndale while getting a degree in civil engineering at Cal State Los Angeles. He formed what would become MGA after graduating, building the Van Nuys company into the world’s largest private toymaker, with $1.2 billion in sales last year. MGA is possibly best known for its Bratz line of dolls – and the legal fight that resulted when arch-rival Mattel Inc. claimed its designer came up with the idea while working at the El Segundo company. The battle lasted nearly a decade, with Mattel ordered to pay MGA’s legal fees and $170 million in damages. The latter award was overturned and MGA has gone back to court seeking $1 billion in damages in a case Larian expects will go to trial next year.
NAME: Isaac Larian
AGE: 62
HOMETOWN: Kashan, Iran
COMPANY: MGA Entertainment
TITLE: Chief executive
You’re still at it with Mattel. Has the lengthy legal fight taken a toll?
Absolutely. Their stated goal was to kill Bratz and blow up MGA, which came out in the trial. In any type of lawsuit, there are no winners, really. Even if you win, it doesn’t matter.
So your feelings toward Mattel haven’t changed.
I have met their new CEO, Chris Sinclair. He’s really a nice person. It’s not the person, it’s the DNA of the company. For 50 years, they have used litigation as a tool to kill their competition.
Any chance this latest litigation can be settled?
I prefer to settle, frankly, and I’ve said that to Mattel and Chris Sinclair directly, at the right terms and the price. There is a price. When somebody does somebody wrong, you have to pay for it. I told Chris Sinclair, I’d like to get this over with and move on with our lives. But if they want to fight, I will continue.
If you had to do it again, would have fought this long?
Yeah, of course. This was basically using legal means to burglarize MGA. And I defended my house: my business, our IP. And I would do it again. When somebody attacks you, and they’re wrong, you need to defend yourself.
Beyond the battle over Bratz, it seems like screens are becoming increasingly popular. Are you shifting in that direction?
The toy business goes through cycles. Right now, anything movie-related does well. After a while, it gets saturated and consumers go back to really wholesome toys for their children. It’s one of the reasons for our success this year. None of the products we have is connected to any TV shows.
You did $1.2 billion in sales last year – have you thought about taking the company public?
Yeah, I’ve thought about it a few times. We were close to doing it in the mid-2000s, but with the loss that Mattel brought, that basically derailed our goals. But we are again considering it. I don’t want to go public just for the sake of being public. If we can really expand the business and give back to the community, that’s why we will do it.
Have you been back to Spires?
Yeah, I took my kids there. I went to the dishwashing room and showed my kids what I’d done, where I worked. The manager of Spires coffee shop, his name was Moe, when he gave me the job, he said, “Are you hungry?” I said yes. He gave me liver and onions. I still taste it. That was 44 years ago.
What was it like, asking for a job when you couldn’t speak English?
The chef, who was also the manager, first told me no, and I left the coffee shop and started walking back to my apartment, really crying. (Moe) came over and asked me if I was Persian. I said yes. He was Persian. I really got lucky with that.
How has that experience shaped what you do?
I’ve had many failures in my life and business. I always say you’ve got to look back to look forward. If I hadn’t washed dishes, I would not know the value of money and hard work. Yes, I had a tough time, but that’s what made my character.
Why toys?
When I was a kid growing up, we didn’t have any toys. We were poor; we lived in kind of the slums of Iran. I’ve been married to my wife now 33 years. She says to me that I’m living my childhood. I love children and I love toys.
Why bring the yellow blanket?
I had nothing. So this was something to keep me warm. I slept on the floor. I still have that blanket. My mom gave me that blanket.
