SoftKey

SoftKey published and distributed CD-ROM-based personal computer software for Windows and Macintosh computers during the late 1980s and 1990s.{{cite book|last1=O'Leary|first1=Kevin|title=Cold Hard Truth: On Business, Money & Life|date=2011|publisher=Doubleday Canada|isbn=978-0-385-67174-3}} Its lineup consisted of software intended for home audiences, specifically shovelware discs containing various freeware or shareware game software. The company enjoyed great success by offering "jewel-case only" products, dubbed its "Platinum" line.{{citation needed|date=January 2020}}

As a home and small office software publisher, SoftKey bought the rights to application packages from their authors and distributed them under its own "Key" label. By late 1992, SoftKey was distributing 35 different products in this manner.{{Cite news|last=Strategy Staff|date=November 16, 1992|title=The secret of SoftKey's success|work=Strategy|url=https://strategyonline.ca/1992/11/16/6696-19921116/|url-status=live|archive-url=https://web.archive.org/web/20201208212357/https://strategyonline.ca/1992/11/16/6696-19921116/|archive-date=December 8, 2020}} SoftKey began to develop its own software by 1994, and had branched out to include edutainment games and CD-ROMs in its line of products.{{Cite news|last=Coolidge|first=Shelley Donald|date=June 28, 1994|title=Competition Drives Software Mergers|work=The Christian Science Monitor|url=https://www.csmonitor.com/1994/0628/28091.html}}

In 1986, SoftKey released specialized graphics package KeyChart for the IBM PC and compatibles, designed to make time-consuming plotting easier.{{Cite news|last=Sandberg-Diment|first=Eirk|date=April 20, 1986|title=The Executive Computer; Putting Plotters To Work In The Office|work=The New York Times|url=https://www.nytimes.com/1986/04/20/business/the-executive-computer-putting-plotters-to-work-in-the-office.html}} In 1993, it was selling KeyMap, a DOS-only software that offered maps, route planning, and a database tool for annotating maps.{{Cite news|last=Swislow|first=William|date=August 29, 1993|title=Just The Facts|work=Chicago Tribune|url=https://www.chicagotribune.com/news/ct-xpm-1993-08-29-9308290139-story.html}} Around this time, Computer Associates acquired Easy Tax (DOS) from SoftKey and sold it as Simply Tax.{{Cite news|last=Rosen|first=Jan M.|date=October 28, 1993|title=COMPANY NEWS; Now Hear This: More Free Software|work=The New York Times|url=https://www.nytimes.com/1993/10/28/business/company-news-now-hear-this-more-free-software.html}}

SoftKey's acquisition of The Learning Company added the Reader Rabbit and Math Rabbit educational video games to its collection. Its acquisition of MECC added The Oregon Trail, Word Munchers, Number Munchers and Storybook Weaver.{{Cite news|date=May 17, 1996|title=SoftKey Buys Another Educational-Software Firm|work=Chicago Tribune|url=https://www.chicagotribune.com/news/ct-xpm-1996-05-17-9605170217-story.html}} With the acquisition of Broderbund, it obtained multiple award-winning brands including Carmen Sandiego, The Print Shop, Living Books, Family Tree Maker, Arthur, and KidPix.{{Cite news|last=Dunkin|first=Alan|date=April 28, 2000|title=Broderbund and The Learning Company Merge|work=GameSpot|url=https://www.gamespot.com/articles/broderbund-and-the-learning-company-merge/1100-2463989/}}

According to founder Kevin O'Leary, SoftKey's business model focused on marketing its retail software products similarly to consumer goods. The company was one of the few to rent store space to manage distribution directly.{{Cite news|last=Pitta|first=Julie|date=October 31, 1995|title=Bidding War Opens for Learning Co.|work=Los Angeles Times|url=https://www.latimes.com/archives/la-xpm-1995-10-31-fi-63283-story.html}} O'Leary emphasized offering retailers a diverse range of titles to mitigate risk and ensure a specific sales volume in exchange for allocated shelf space.

SoftKey introduced innovations such as revolving racks for software packaged in standard CD jewel cases, enabling more efficient product displays.{{Cite news|last=Choi|first=Audrey|date=November 2, 1995|title=SoftKey Sells Software Just Like Other Commodities|work=The Associated Press|url=https://apnews.com/article/461ff606bb035e4e5ad05c8eef84ab37}} The company expanded software sales from niche markets to general retail locations, including Office Depot, Radio Shack, Willson Stationers, and SmithBooks. Its strategy relied on uniform packaging and visually appealing graphics to attract customers.

By October 1995, SoftKey operated in 10 cities across Europe, Asia, Canada, and the United States. Its products were available in over 18,000 retail outlets, including grocery stores and airport gift shops, and distributed in 47 countries.{{Cite news|last=Dunn|first=Connie|date=October 1, 1995|title=Industry Interview: SoftKey International. Inc.|work=Computer User|url=http://www.computeruser.com/magazine/texas/0510/intv0510.html|url-status=live|archive-url=https://web.archive.org/web/20010119170500/http://www.computeruser.com/magazine/texas/0510/intv0510.html|archive-date=January 19, 2001}}

SoftKey's pricing strategy was to prioritize the number of copies sold over the price per unit. As such, SoftKey listed its titles for lower prices, generally between $40 and $100, with minimum profit. The Christian Science Monitor stated that the move could "transform the industry," leading to lower software prices but more variety in the types of stores that sell software.{{Cite news|last=Belsie|first=Laurent|date=May 13, 1994|title=Consumer Software Is Expected To Be Next Fast-Growing Segment|work=The Christian Science Monitor|url=https://www.csmonitor.com/1994/0513/13082.html}}

The corporate mission of SoftKey International, Inc. was "to be the leading electronic publisher of value-priced consumer software-worldwide." One analyst dubbed its products "coasterware", since they were so cheap that "if you don't like the actual software you can use the CD-ROMs as drink coasters".

O'Leary wanted to "produce products to service that 40 percent of the market that hasn't bought educational software because of pricing issues."{{cite news|last=Fisher|first=Lawrence M.|date=December 8, 1995|title=SoftKey Reaches Agreement to Buy Learning Company|newspaper=The New York Times|url=https://www.nytimes.com/1995/12/08/business/softkey-reaches-agreement-to-buy-learning-company.html|url-status=live|access-date=September 10, 2016|archive-url=https://web.archive.org/web/20160916082104/http://www.nytimes.com/1995/12/08/business/softkey-reaches-agreement-to-buy-learning-company.html|archive-date=September 16, 2016|issn=0362-4331|df=mdy-all}} He stated, "In the last two years, we've moved from an industry that sells primarily to businesses to an industry that's going through a violent change to become a commodity.''

The company became known for aggressively driving down the development costs of products and laying off employees of the companies it acquired.{{Cite web|title=History of The Learning Company Inc. – FundingUniverse|url=http://www.fundinguniverse.com/company-histories/the-learning-company-inc-history/|url-status=live|archive-url=https://web.archive.org/web/20160916042436/http://www.fundinguniverse.com/company-histories/the-learning-company-inc-history/|archive-date=September 16, 2016|access-date=September 15, 2016|website=www.fundinguniverse.com|df=mdy-all}} Casey Dworkin, publisher of Retail Price Week, said that SoftKey appeals to companies that want to "sell software by the pound, appealing to impulse purchases by customers who are intrigued but don't want to drop $40 for a piece of software." They compared SoftKey's practices to a laundry-detergent maker marketing a premium-brand version, a lower-end brand, and a generic version of the same product.

SoftKey built a business by acquiring struggling software companies, repackaging and repricing its products.{{Cite news|last=Fisher|first=Lawrence M.|date=December 8, 1995|title=SoftKey Reaches Agreement to Buy Learning Company|work=The New York Times|url=https://www.nytimes.com/1995/12/08/business/softkey-reaches-agreement-to-buy-learning-company.html}} "SoftKey believes that much consumer software is overpriced and therefore cannot reach a broad market. It's a philosophy that clashes with the artistic sensibilities of many in the multimedia software business—but is nonetheless likely to become increasingly influential in the volatile software world."{{Cite news|last=Pitta|first=Julie|date=December 8, 1995|title=Learning Co. to Be Bought by SoftKey for $606 Million: Computers: Friendly suitor Broderbund is outbid. Deal would make SoftKey largest educational software company.|work=Los Angeles Times|url=https://www.latimes.com/archives/la-xpm-1995-12-08-fi-11785-story.html}}

SoftKey Software Products was the fastest growing company in Canada in 1992, with sales of $36.8 million and profit of $6.1 million. Its most profitable products were its tax-software and processing service. By April 1995, SoftKey's stock was valued at $25.50, about 20 times the year's earnings.{{Cite news|last=Abelson|first=Reed|date=April 9, 1995|title=Investing it: The ground floor – Basking in Technology's Glow|work=The New York Times|url=https://www.nytimes.com/1995/04/09/business/investing-it-the-ground-floor-basking-in-technology-s-glow.html}} A public offering of 2.3 million common shares was priced at $28.875.{{Cite news|date=June 28, 1995|title=Stocks Fall in Volatile Trading, With Dow Off by 8.64|work=The New York Times|agency=Associated Press|url=https://www.nytimes.com/1995/06/28/business/stocks-fall-in-volatile-trading-with-dow-off-by-8.64.html}}

SoftKey products were sold in more than 19,000 stores in over 40 countries {{Cite news|date=September 28, 1995|title=SoftKey's Best Sellers Now Available For Windows 95|work=Bloomberg|url=https://www.bloomberg.com/press-releases/1995-09-27/softkey-s-best-sellers-now-available-for-windows-95}} In June of that year, Montgomery Securities raised more than $60 million for the company. In October, SoftKey raised another $350 million in an unrated private offering.{{Cite news|last=Greenberg|first=Herb|date=October 25, 1995|title=Business Insider – Does SoftKey International Have Some Hard Core Problems?|work=SFGate|url=https://www.sfgate.com/news/article/BUSINESS-INSIDER-Does-SoftKey-International-3020437.php}} On November 28, 1995, SoftKey rose from 3.2 million to 4.7 million shares, the largest increase in open positions among Nasdaq issues.{{Cite news|date=November 28, 1995|title=Uncovered Short Positions Gain 2% on Nasdaq Market|work=The New York Times|url=https://www.nytimes.com/1995/11/28/business/uncovered-short-positions-gain-2-on-nasdaq-market.html}}

In August 1998, the stock exchange halted trading in The Learning Company, as the company issued a statement to clear up questions about its accounting practices.{{Cite news|date=August 20, 1998|title=The Learning Company Stock Dives Nearly 20%|work=Los Angeles Times|agency=Reuters|url=https://www.latimes.com/archives/la-xpm-1998-aug-20-fi-14770-story.html}} Shares of The Learning Company (NYSE: TLC) fell 1 15/16 to 26 3/8 and Mattel (NYSE: MAT) plunged 20 percent to 23 11/16.{{Cite news|last=Dignan|first=Larry|date=December 14, 1998|title=Mattel/The Learning Co. in $3.8B merger|work=Znet|url=https://www.zdnet.com/article/mattelthe-learning-co-in-3-8b-merger/}} The company continued to grow, with revenue of $800 million despite an accumulated deficit of $1.1 billion by the end of 1998.

In 1986, Canadian businessman and investor Kevin O'Leary along with John Freeman{{Cite web|url=https://youtube.com/watch?v=7drvFEh_T80&feature=youtu.be |archive-url=https://ghostarchive.org/varchive/youtube/20211221/7drvFEh_T80 |archive-date=2021-12-21 |url-status=live|website=YouTube |title=How I Made My First Million Dollars Part 1 | Ask Mr. Wonderful Shark Tank's Kevin O'Leary |date=June 8, 2020 }}{{cbignore}} started SoftKey Software Products, Inc. in O'Leary's basement with a loan of $10,000 from his mother.{{Cite web|last=Scipioni|first=Jade|date=2019-07-24|title=What Kevin O'Leary would do if he lost everything and had to start over|url=https://www.cnbc.com/2019/07/24/what-kevin-oleary-would-do-if-he-had-to-start-over.html|access-date=2020-11-07|website=CNBC|language=en}}{{cite web|date=17 April 2015|title='Shark Tank' investor Kevin O'Leary explains how a $10,000 loan from his mother helped him build a $4 billion company|url=http://www.businessinsider.com/the-best-money-kevin-oleary-ever-spent-2015-4|access-date=19 January 2017|publisher=businessinsider.com}} He convinced other companies to bundle SoftKey's products with their own, later licensing software from other firms, which proved more cost-effective than internal development.{{Cite news|title=A history of Kevin O'Leary's spotty business record, in four deals|url=https://www.canadianbusiness.com/blogs-and-comment/kevin-oleary-conservative-leadership-bid-business-record/|access-date=2020-11-07|newspaper=Canadian Business - Your Source for Business News|date=January 19, 2017 }}

In 1993, SoftKey International was created out of a three-way merger between SoftKey Software Products, WordStar International, and Spinnaker Software.{{Cite web|date=August 18, 1993|title=SoftKey to buy Spinnaker, WordStar|url=https://www.upi.com/Archives/1993/08/18/SoftKey-to-buy-Spinnaker-WordStar/4167745646400/|access-date=2020-11-04|website=UPI|language=en}}{{Cite news|date=August 18, 1993|title=BUSINESS TECHNOLOGY; 3-Way Merger In Software|work=The New York Times|agency=Reuters|url=https://www.nytimes.com/1993/08/18/business/business-technology-3-way-merger-in-software.html}} Shareholders of Softkey Software represented about 53 percent of the new company's shares. After the merger, the company moved to Spinnaker's offices in Cambridge, Mass.{{Cite news|last=Slater|first=Derek|date=February 14, 1994|title=SoftKey: gazelle or lummox|work=Computerworld|url=https://books.google.com/books?id=t5pTA_Z_oqQC&q=%22softkey+software%22OR%22softkey+international%22&pg=PA121}}

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In October 1995, SoftKey initiated a bidding war against Broderbund for Learning Company, launching a hostile offer valued at $606 million. SoftKey also announced it had agreed to buy the Minnesota Educational Computing Corporation (MECC) for $370 million, throwing a wrench into Broderbund's offer.{{Cite news|last=Strom|first=Stephanie|date=October 31, 1995|title=Mergers For Year Approach Record|work=The New York Times|url=https://www.nytimes.com/1995/10/31/us/mergers-for-year-approach-record.html}} O'Leary commented, "They're working on the economics of yesterday", stating that "Learning's premium-priced products were out of step with trends in the market."{{Cite news|last=Fisher|first=Lawrence M.|date=November 9, 1995|title=Learning Accepts New Offer From Broderbund Software|work=The New York Times|url=https://www.nytimes.com/1995/11/09/business/learning-accepts-new-offer-from-broderbund-software.html|access-date=2020-12-05}}

After the acquisition of The Learning Company, SoftKey changed its name to "The Learning Company".{{Cite magazine|last=Donahue|first=Sean|date=July 22, 1998|title=Broderbund Acquired|magazine=Wired|url=https://www.wired.com/1998/06/broderbund-acquired/}} A substantial percentage of the staff were let go, reducing it to a skeleton staff.{{Citation needed|date=January 2021}} MECC' senior vice president of product development Susan Schilling stated: "[O'Leary] had an interest in earning money. I'm not sure he had a desire to help children learn."{{Cite news|last=Lussenhop|first=Jessica|date=January 19, 2011|title=Oregon Trail: How three Minnesotans forged its path|work=City Pages|url=http://www.citypages.com/content/printVersion/1740595/|url-status=dead|access-date=|archive-url=https://web.archive.org/web/20110123012937/http://www.citypages.com/content/printVersion/1740595/|archive-date=January 23, 2011}}

On September 14, 1994, SoftKey acquired privately held Software Marketing Corp., Phoenix, for about 600,000 shares of SoftKey common stock and the assumption of $1.6 million in long-term debt.{{Cite news|date=September 14, 1994|title=Company Briefs|work=The New York Times|url=https://www.nytimes.com/1994/09/14/business/company-briefs-239330.html}}

On November 30, 1995, the original Learning Company announced that it had sued the Tribune Company for violating securities laws as a "strategic partner" of SoftKey International.{{Cite news|date=December 2, 1995|title=Tribune Is Sued By Learning Company|work=The New York Times|agency=Reuters|url=https://www.nytimes.com/1995/12/02/business/company-news-trubune-is-sued-by-learning-company.html}} The next day, SoftKey agreed to acquire Compton's New Media from Tribune for stock valued at $106.5 million.{{Cite news|last=Fisher|first=Lawrence M.|date=December 1, 1995|title=SoftKey Gets an Ally in Hostile Takeover Bid|work=The New York Times|url=https://www.nytimes.com/1995/12/01/business/softkey-gets-an-ally-in-hostile-takeover-bid.html}} Compton's New Media was a publisher of encyclopedia CD-ROMs, and was originally a unit of Encyclopedia Britannica.{{cite news |last=Rothman |first=Matt |date=1993-07-06 |title=Tech News; Compton's New Media attracts buyers' attention |work=Variety |url=https://variety.com/1993/biz/news/tech-news-compton-s-new-media-attracts-buyers-attention-105552/}}{{cite news |date=1994-10-31 |title=Patent Barred For Compton's |work=The New York Times |url=https://www.nytimes.com/1994/10/31/business/patent-barred-for-compton-s.html}}

In 1996, SoftKey International acquired EduSoft, a French education software developer and publisher, for $14.3M USD.{{Cite web |last=CBR Staff Writer |date=August 14, 1996 |title=SOFTKEY BUYS EDUSOFT IN PARIS |url=https://techmonitor.ai/technology/softkey_buys_edusoft_in_paris |publisher=Tech Monitor}}

In March 1998, Softkey, now called The Learning Company, acquired Mindscape Inc. from Pearson PLC for $150 million in cash and stock.{{Cite news|date=March 7, 1998|title=Company News; Learning Company Sets Deal For Mindscape|work=The New York Times|agency=Dow Jones|url=https://www.nytimes.com/1998/03/07/business/company-news-learning-company-sets-deal-for-mindscape.html}} Broderbund's Red Orb Entertainment was moved to Mindscape.{{Cite news|last=Dunkin|first=Alan|date=October 2, 1998|title=Red Orb Stays With Mindscape|work=GameSpot|url=https://www.gamespot.com/articles/red-orb-stays-with-mindscape/1100-2465105/}}

In June 1998, Learning Co. agreed to buy rival Broderbund Software Inc., publisher of the blockbuster game Myst, in a stock deal valued at about $416 million.

In December 1998, The Learning Company acquired Palladium Interactive.{{Cite web|url=https://www.sfgate.com/business/article/Learning-Company-Acquires-Again-Palladium-makes-2975919.php|title=Learning Company Acquires Again / Palladium makes genealogy software|date=December 1998}}

According to Information technology consulting company Booz Allen Hamilton, two of SoftKey International's acquisition deals rank among the ten worst U.S. acquisitions during 1994–1996 as measured by shareholder value two years after the deal.{{Cite news|date=April 2000|title=Learning from Mattel|work=Tuck School of Business at Dartmouth|url=http://mba.tuck.dartmouth.edu/digital/Research/CaseStudies/1-0072.pdf}}

In the fall of 1998, Mattel agreed to acquire The Learning Company in a stock-for-stock merger valuing the company at approximately $4.2 billion. The merger was finalized and unanimously approved by both companies' boards of directors on December 14.{{Cite news|last=|first=|date=December 14, 1998|title=Shareholder News: Cutbacks in Retailer Buying; Mattel and The Learning Company Agree To Merge|work=Mattel|url=http://shareholder.com/mattel/news/19981214-54246.cfm|url-status=dead|access-date=|archive-url=https://web.archive.org/web/20071017132328/http://shareholder.com/mattel/news/19981214-54246.cfm|archive-date=October 17, 2007}} On May 7, 1999, shareholders of both companies voted to approve the merger. The merger was completed on May 13, 1999.{{Cite news|date=May 7, 1999|title=Press Releases: Shareholders Approve Merger of Mattel and The Learning Company|work=Mattel|url=http://shareholder.com/mattel/news/19990507-54218.cfm|archive-url=https://web.archive.org/web/20071017134759/http://shareholder.com/mattel/news/19990507-54218.cfm|url-status=live|archive-date=October 17, 2007}} Jill E. Barad, Mattel's chairman and chief executive officer stated "This merger gives Mattel a $1 billion software division with an unparalleled portfolio of branded content and profit margins exceeding that of our traditional business,"{{Cite news|date=May 13, 1999|title=Press Release: Mattel Completes Merger with The Learning Company|work=Mattel|url=http://shareholder.com/mattel/news/19990513-54214.cfm|archive-url=https://web.archive.org/web/20071017111641/http://shareholder.com/mattel/news/19990513-54214.cfm|url-status=live|archive-date=October 17, 2007}} The company was placed under Mattel's new Mattel Interactive division.{{Cite news|date=2000|title=Mattel, Inc. 1999 Annual Report: A Truly Great Company, With The Very Best People, A Compelling Underlying Strategy And Resources For Sustainable Growth|work=Mattel|url=https://www.annualreports.com/HostedData/AnnualReportArchive/m/NASDAQ_MAT_1999.pdf}}

The sale proved to be fraught. A report from the Center for Financial Research and Analysis a few weeks after the merger highlighted the "lack of proper due diligence by Mattel during the Learning Co. acquisition," and listed numerous systemic problems with The Learning Company. A few weeks later O'Leary, who had been hired as president of Mattel's new TLC digital division, sold his stock in the company for $6 million. In the fourth quarter of 1999, Mattel reported a loss of $184 million, reportedly due to poor sales and inventory problems.{{Cite news|last=Mayer|first=Caroline E.|date=February 4, 2000|title=Ailing Mattel Forces CEO to Resign|newspaper=The Washington Post|url=https://www.washingtonpost.com/archive/business/2000/02/04/ailing-mattel-forces-ceo-to-resign/40ca265c-0304-4b07-b885-b56da9891bad/}} The stock price valuation of Mattel dropped $2 billion in one day. Michael Perik and Kevin O'Leary, founders and heads of the Learning Co, left the company.{{Cite news|last=Bannon|first=Lisa|date=November 11, 1999|title=Co-Founders of Learning Co. Unit Leave Mattel After Earnings Surprise|work=The Wall Street Journal|url=https://www.wsj.com/articles/SB942254741150970380}}

The Telegraph deemed it "one of the worst takeovers in recent history".{{Cite news|last=Cave|first=Andrew|date=September 30, 2000|title=Mattel sale ends $3.6bn fiasco|work=The Telegraph|url=https://www.telegraph.co.uk/finance/4467013/Mattel-sale-ends-3.6bn-fiasco.html}} Toy analyst Margaret Whitfield of Tucker Anthony Cleary Gull called it "a disaster for Mattel".{{Cite news|date=April 16, 2001|title=Gores Engineers Rapid Turnaround At Software Maker|work=The Gores Group|agency=Los Angeles Business Journal|url=http://www.gores.com/news/archives/2001/news_pr_20010416.shtml|url-status=live|archive-url=https://web.archive.org/web/20101209004158/http://www.gores.com/news/archives/2001/news_pr_20010416.shtml|archive-date=December 9, 2010}} Bloomberg, Businessweek, and CNBC all described it as one of the worst mergers of all time.{{cite web|last=Rosenbush|first=Steve|date=October 4, 2007|title=When Big Deals Go Bad—and Why|url=https://www.bloomberg.com/bw/stories/2007-10-04/when-big-deals-go-bad-and-whybusinessweek-business-news-stock-market-and-financial-advice|access-date=October 11, 2015|website=Bloomberg}}{{Cite web|date=2009-12-29|title=Top 10 Best (and Worst) Mergers of All Time|url=https://www.cnbc.com/2009/12/29/Top-10-Best-(and-Worst)-Mergers-of-All-Time.html|access-date=2020-11-07|website=CNBC|language=en}}

In January 2000, Mattel brought on software executive and former Sega of America president Bernie Stolar to assist with their financial troubles.{{Cite news|last=Hays|first=Constance L.|date=February 4, 2000|title=Chief of Mattel Steps Down After Reporting Loss in 1999|work=The New York Times|url=https://www.nytimes.com/2000/02/04/business/chief-of-mattel-steps-down-after-reporting-loss-in-1999.html}} On February 3, 2000 Chairman and CEO Jill E. Barad resigned from Mattel.{{Cite news|last=|first=|date=February 3, 2000|title=Press Releases: Mattel Reports 1999 Results|work=Mattel|url=http://shareholder.com/mattel/news/20000203-42891.cfm|url-status=dead|access-date=|archive-url=https://web.archive.org/web/20071017111732/http://shareholder.com/mattel/news/20000203-42891.cfm|archive-date=October 17, 2007}} The 1999 Annual Report began, "The bad news for 1999 unfortunately has overshadowed the good news. We are all painfully aware of the negative effect the acquisition of The Learning Company and its subsequent performance had on our results for 1999"

The acquisition saw the end of the mid-1990s edutainment boom. Former Learning Company educational design department manager, Toby Levenson, said that edutainment had become "a toxic word". Blake Montgomery of EdSurge wrote, "For many years, people making educational products didn't want them to be entertaining because that could be called "edutainment" and that would hurt your funding.”{{Cite web|date=2016-02-07|title=Is the Educational Games Industry Falling Into the Same Trap It Did 20 Years Ago? - EdSurge News|url=https://www.edsurge.com/news/2016-02-07-is-the-educational-games-industry-falling-into-the-same-trap-it-did-20-years-ago|access-date=2020-11-07|website=EdSurge|language=en}}

On April 3, 2000, Mattel announced its plan to dissolve its assets related to the software business. Gores Technology Group acquired The Learning Company for $27.3 million plus a profit-sharing agreement with Mattel, to create their entertainment, productivity and education divisions, which became GAME Studios, The Learning Company, and Broderbund respectively.{{Cite news|last=|first=|date=September 29, 2000|title=Gores Technology Group Acquires The Learning Company From Mattel, Inc.|work=The Gores Group|url=http://www.gores.com/news/archives/2000/news_pr_20000929.shtml|url-status=dead|access-date=|archive-url=https://web.archive.org/web/20080513131245/http://www.gores.com/news/archives/2000/news_pr_20000929.shtml|archive-date=May 13, 2008}} GAME Studios was sold to Ubisoft in 2001. Gores subsequently sold most of the other holdings – including the edutainment series and the brand name The Learning Company – to Irish company Riverdeep Interactive Learning, which later became Houghton Mifflin Harcourt.{{Cite web| title=Gores Technology group acquires The Learning Company from Mattel, Inc. | url=https://www.gores.com/wp-content/uploads/2018/01/Press-Release-Gores-Technology-Group-Acquires-The-Learning-Company-from-Mattel-Inc..pdf | archive-url=https://web.archive.org/web/20201029101852/https://www.gores.com/wp-content/uploads/2018/01/Press-Release-Gores-Technology-Group-Acquires-The-Learning-Company-from-Mattel-Inc..pdf | archive-date=2020-10-29}} Harcourt released several book sets under The Learning Company brand umbrella, including Oregon Trail Adventures, The Little Box of Love, and The Little Box of Laughs.{{cite web|last=Ginns|first=Russell|author-link=Russell Ginns|date=September 11, 2014|title=Book Set Review: "The Little Box of Love"|url=http://yeahstub.com/book-set-review-the-little-box-of-love-by-russell-ginns/|website=yeahstub.com}}

As of April 2018, Houghton Mifflin Harcourt has ceased using the Learning Company brand.{{citation needed|date=January 2020}}

• February 1994 – WordStar International and Spinnaker Software
• June 1994 – Aris Multimedia Entertainment
• July 1994 – Compact Publishing
• September 1995 – Software Marketing Corporation
• July 1995 – Tewi Verlag GmbH
• August 1995 – Future Vision Holding
• December 1995 – The Learning Company
• December 1995 – Compton's NewMedia
• Late 1995 – EduSoft
• May 1996 – Minnesota Educational Computing Corporation (MECC)
• October 1997 – Microsystems Software
• December 1997 – Creative Wonders
• March 1998 – Mindscape
• August 1998 – Broderbund

{{Columns-list|

• 20,000 Leagues Under the Sea{{cite book|last=Verne|first=Jules|title=20,000 leagues under the sea [CD-ROM|date=17 July 1995|oclc=655891547}}
• Air Power: The US Air Force in Action{{cite book|title=Air power: The U.S. Air Force in action|date=17 July 1995|oclc=39734008}}
• The American Heritage Talking Dictionary{{cite book|last=SoftKey International Inc|title=The American Heritage talking dictionary|date=17 July 1995|publisher=SoftKey|oclc=38959902}}
• Angst: Rahz's Revenge
• ArtRageous: The Amazing World of Art{{cite book|last=SoftKey International Inc|title=ArtRageous!: the amazing world of art|date=17 July 1995|publisher=SoftKey International|oclc=222224231}}
• Arthur's Reading Race{{cite book|last=Trim|first=Mary|url=https://books.google.com/books?id=LQXfsFwCowMC&q=softkey+game+titles&pg=PA225|title=Growing and Knowing: A Selection Guide for Children's Literature|date=1 January 2004|publisher=Walter de Gruyter|isbn=9783598440076|via=Google Books}}
• Astrorock{{cite book|title=Astrorock: CD-ROM|date=17 July 1997|publisher=SoftKey|oclc=786165091}}
• The Bible: A Multimedia Experience{{cite book|last1=SoftKey International Inc|title=The Bible: a multimedia experience|last2=World Library|first2=Inc|date=17 July 1999|publisher=Learning Co.|oclc=43689223}}
• BodyWorks 5.0: the complete multimedia guide to human anatomy{{cite book|title=BodyWorks 5.0: the complete multimedia guide to human anatomy|date=17 July 1993|oclc=34314842}}
• Comanche CD (Budget CD-ROM Release)
• Design It! 3-D
• DinoPark Tycoon{{cite book|last=SoftKey International Inc|title=DinoPark tycoon|date=17 July 1995|publisher=SoftKey International Inc.|oclc=35845074}}
• Dr. Health'nstein's Body Fun
• Dr. Schueler's Home Medical Advisor Pro{{cite book|last=SoftKey Multimedia Inc|title=Dr. Schueler's home medical advisor pro|date=17 July 1997|publisher=SoftKey|oclc=319894925}}
• Dr. Seuss' ABC
• Earthworm Jim
• Explorers of the New World{{cite book|last=SoftKey Multimedia Inc|title=Explorers of the New World|date=17 July 1999|publisher=SoftKey Multimedia|oclc=45795055}}
• Falcon AT
• Flight of the Intruder
• Green Eggs and Ham
• The Hubble Space Telescope{{cite book|title=The Hubble Space Telescope|date=17 July 1995|publisher=SoftKey Multimedia|oclc=33346900}}
• Infopedia{{cite book|last=SoftKey Multimedia Inc|title=Infopedia 2.0|date=17 July 1996|publisher=SoftKey Multimedia Inc.|oclc=695597879}}
• JetStrike{{cite book|title=Jetstrike: the ultimate surprise attack|date=17 July 1995|publisher=SoftKey; [Eksp. Indbindingscentralen|oclc=472732146}}
• Just Grandma and Me
• KeyAccounting (also known as Painless Accounting)
• KeyCad CompleteHard Copy of program's Instruction Manual
• KeyChart{{cite book|title=KeyChart|date=17 July 1987|oclc=22456636}}
• KeyClipart series{{cite book|last=SoftKey Multimedia Inc|title=KEY mega ClipArt 15,000|date=17 July 1995|publisher=SoftKey|oclc=42915334}}
• KeyDatabase Plus
• KeyFonts{{cite book|title=Key fonts pro: CD-ROM for Windows & Mac|date=17 July 1994|oclc=34159677}}
• KeyMailer
• KeyPublisher
• The Koshan Conspiracy{{cite book|last=SoftKey Multimedia|title=The Koshan conspiracy|date=17 July 1993|publisher=SoftKey|oclc=222149768}}
• Labels Unlimited{{cite book|last=SoftKey Multimedia Inc|title=Labels unlimited: your total professional labeling system|date=17 July 1997|publisher=SoftKey Multimedia Inc.|oclc=39706385}}
• Lamborghini American Challenge{{cite book|last=SoftKey International|title=Lamborghini: American challenge|date=17 July 1995|publisher=SoftKey Multimedia|oclc=38859412}}
• Leonardo, the inventor{{cite book|last=SoftKey Multimedia Inc|title=Leonardo, the inventor: take a look inside the greatest mind the world has ever known|date=17 July 1996|publisher=SoftKey|oclc=35148711}}
• Lynn Fischer's Healthy Indulgences{{cite book|last1=Fischer|first1=Lynn|title=Lynn Fischer's healthy indulgences|last2=SoftKey Multimedia Inc|date=17 July 1995|publisher=SoftKey|oclc=33482694}}
• Me and my world: Multimedia picture dictionary{{cite book|last=SoftKey Multimedia Inc|title=Me and my world: [multimedia picture dictionary|date=17 July 1995|publisher=SoftKey|oclc=38426305}}
• Megafortress & Patriot
• MPC Wizard{{cite book|last=SoftKey International Inc|title=MPC wizard: test & tune your manual multimedia PC|date=17 July 1994|publisher=SoftKey International|oclc=32301269}}
• Multipedia{{cite book|last=SoftKey International Inc|title=Multipedia: the reference library that starts where your encyclopedia leaves off|date=17 July 1995|publisher=SoftKey Multimedia|oclc=37016199}}
• The Muppet Calendar{{cite book|title=The Muppet calendar|date=17 July 1995|publisher=SoftKey|oclc=49297435}}
• The Oregon Trail: Classic Edition{{cite book|last=SoftKey Multimedia Inc|title=The Oregon Trail|date=17 July 1996|publisher=SoftKey|oclc=35923659}}
• Oregon Trail II{{cite book|last1=Minnesota Educational Computing Corporation|title=Oregon Trail II|last2=SoftKey Multimedia Inc|last3=Learning Company|date=17 July 1997|publisher=Learning Co.|oclc=47630963}}
• The Otter's Adventure{{cite book|title=The Otter's adventure|date=17 July 1995|publisher=SoftKey International|oclc=224956581}}
• Pocket and Tails Go Exploring{{cite book|last1=Optical Data Corporation|title=Pocket & Tails go exploring|last2=SoftKey Data Corporation|date=17 July 1995|publisher=SoftKey; Optical Data Corp.|oclc=36661217}}
• PC PaintBrush Clipart Collection For Windows ({{ISBN|1-56434-687-0}} )
• Pocket and Tails Go to Town{{cite book|title=Pocket & Tails go to town|date=17 July 1995|oclc=965562713}}
• Pro Landscaper 3-D{{cite book|title=Pro landscaper 3-D|date=17 July 1997|oclc=222595034}}
• Shadows of Cairn{{cite book|title=Shadows of Cairn|date=17 July 1995|oclc=37488752}}
• Shelley Duvall's Tales of Digby the Dog{{cite book|last1=Duvall|first1=Shelley|title=Shelley Duvall's Tales of Digby the dog|last2=Sanctuary Woods Multimedia Corporation|last3=SoftKey International Inc|date=17 July 1994|publisher=Sanctuary Woods Multimedia: SoftKey International|oclc=35120535}}
• Silent Service II{{cite book|title=Silent service II|date=17 July 1995|publisher=SoftKey; [Eksp. Indbindingscentralen|oclc=471332913}}
• SoftKey Weekend{{cite book|last=SoftKey Multimedia Inc|title=SoftKey weekend|date=17 July 1995|publisher=SoftKey Multimedia|oclc=33986770}}
• Solitaire Antics
• Spanish to Go!{{cite book|last1=RXL Pulitzer|title=Spanish to go!|last2=SoftKey|date=17 July 1996|publisher=SoftKey|oclc=39009997}}
• Sports Illustrated Swimsuit Calendar{{cite book|title=Sports illustrated swimsuit calendar|date=17 July 1994|publisher=SoftKey International|oclc=47940006}}
• Tom Kite Golf
• Troggle Trouble Math{{cite book|last=SoftKey Multimedia Inc|title=Troggle trouble math|date=17 July 1996|publisher=SoftKey Multimedia|oclc=422695128}}
• The Three Little Pigs
• WriteNow
• Wordstar for Windows 2Box, user manual and license key. No diskette or CD.
• War Wind II: Human Onslaught

}}

{{Reflist}}

• {{Webarchive|url=https://web.archive.org/web/19970101075817/http://www.softkey.com/|date=1997|title=Official website}}

{{Authority control}}

Category:Defunct software companies of the United States

Category:Mattel subsidiaries

Category:Defunct software companies of Canada