If Mattel has learned anything from its year-long ownership of the Learning Co. software business, it's that you cut your losses and move on.
Mattel, which does a lot better making Barbie dolls and Hot Wheels than overseeing software development, said Monday that it is putting the Learning Co. -- which it acquired last May for $3.5 billion -- up for sale.
The acquisition proved to be disastrous for Mattel. The Learning Co. racked up big losses, driving Mattel's stock down sharply and contributing to the resignation of Jill Barad, the company's former chairwoman and CEO.
Credit Suisse First Boston has been retained to handle the sale, and Mattel is hoping to get between $500 million and $1 billion for the white elephant, depending whether certain licensing rights are included, The Wall Street Journal reported.
Mattel's directors have made it clear that they do not intend to include control of any Mattel brands in the deal.
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Breaking the barrier: America Online is the first Internet company to join the ranks of the Fortune 500, the annual list of top companies compiled by Fortune magazine.
AOL is ranked 337th on a list that features a number of technology companies, including Dell (56th), Microsoft (84th), and Cisco (146th). All those little startups that are making instant millionaires out of stock-options holders were nowhere to be seen.
Meanwhile, biotechnology landed a company on the list for the first time as well. Amgen Inc. made it at 463.
The Fortune 500 is still heavily dominated by the more traditional, so-called brick-and-mortar companies, the kind of firms that actually make things.
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He's ba-a-a-ck: Michael Milken, the former junk-bond king who went away on a federal vacation after running afoul of the law, is focused on the Internet these days.
Knowledge Universe, partly owned by Milken, bought 12 percent of Britain's Paradigm Media Investments. Knowledge already owns a major stake in Spring Group, a British technology firm.
Daniel Levy, Paradigm's chairman, welcomed the move.
"Knowledge Universe has an impressive record and a strong board, and we believe Paradigm will undoubtedly benefit from its technology, Internet, and investment expertise," he said in a statement.
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Nokia's big deal: The Finnish telecom equipment maker said Monday that it has landed one of its largest deals ever, a $500 million agreement with U.S. vendor WoiceStream for GSM handsets and network expansion.
Nokia will expand VoiceStream's GSM (Global System for Mobile Communications) 1900 network, which will allow VoiceStream to provide WAP-based mobile Internet services to its subscribers.
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Briefly told: Nextel Communications unveiled Worldwide, a dual-mode iDEN/GSM digital wireless network that will serve the United States and 65 other countries.... EMI, the British music group, and GlobalNet Systems, a U.S. Internet TV specialist, will provide an on-demand, pay-to-use media programming service over the Net.... NBCi said Monday that it will buy privately held Flyswat, which links Internet content and commerce services, for $70 million in stock.
Reuters contributed to this report.
