LJN

LJN Toys Ltd.

Company type	Subsidiary
Industry	Toy manufacturing, video game publishing
Founded	1967
Founder	Jack Friedman
Defunct	1994
Fate	Discontinued by Acclaim Entertainment; brand briefly revived in 2000
Headquarters	Lyndhurst, New Jersey (until 1990); Oyster Bay, New York (after 1990) , United States
Key people	Jack Friedman (founder), Lawrence J. Kirk Jr. (president 1989–1990)
Products	Toys, licensed action figures, video games
Parent	MCA Inc. (1985–1990), Acclaim Entertainment (1990–1994)

LJN Toys Ltd. was a U.S.-based toy manufacturer and video game publisher established by Jack Friedman in 1967. In 1985, MCA Inc. acquired the company, which was later sold to Acclaim Entertainment in 1990. Following the acquisition, Acclaim discontinued LJN's toy division and dismissed most of its staff as the business pivoted towards video game publishing. LJN ceased operations in 1994, although its brand saw a brief revival in 2000.

Foundation and growth (1967–1985)

Jack Friedman founded LJN in 1967 with capital provided by his employer, Norman J. Lewis Associates—the company’s name "LJN" reflects the reversal of Lewis’s initials. Inspired by the rapid sales expansion of rivals such as Mattel and Milton Bradley Company, Friedman launched LJN with a strategy that shifted investment away from television advertising toward securing licenses for toys tied to TV programs, beginning with Emergency!. By 1982, the firm was paying up to $250,000 for such licenses.

LJN acquired the rights to produce E.T. the Extra-Terrestrial toys for $25,000 after other firms declined, resulting in sales between $16 million and $25 million without any advertising support. Another notable success was a doll modeled on Brooke Shields, which cost $2 million to promote but generated over $12 million in revenue in 1982. These achievements contributed to LJN’s revenue growth from $5 million in 1971 to $70 million by 1982.

In 1984, LJN obtained the license for the World Wrestling Federation, manufacturing the widely popular Wrestling Superstars action figures from 1984 through 1989. The company also competed directly with Mattel by launching the ThunderCats toyline as a competitor to Mattel's Masters of the Universe series.

Under MCA ownership (1985–1990)

On March 26, 1985, MCA Inc. announced plans to acquire a 63% stake in LJN for $39.8 million and intended to purchase the remaining shares at $14.26 each, valuing the entire transaction near $65 million. Despite this, LJN did not post net profits from 1986 through 1989, prompting MCA to record a $53 million after-tax loss before selling LJN to Acclaim Entertainment for $30 million in April 1990. In 1987, LJN reported revenues of $110.5 million but suffered a net loss of $37.3 million. As part of the sale agreement, MCA received 1.2 million shares in Acclaim and sold most of them by 1991 for approximately $4.3 million.

LJN ventured into video games in 1987 by publishing licensed titles based on films and television series, partnering with developers including Atlus, Beam Software, and Rare for the Nintendo Entertainment System. That same year, the company introduced the LJN Video Art system. By 1990, nearly three-quarters of LJN’s $70 million revenue originated from video game sales on Nintendo platforms.

The company also launched a paint gun product line named Gotcha!, licensed from the movie Gotcha!. This product faced backlash from consumer safety advocates due to concerns over its design and ultimately failed financially. MCA absorbed a $35 million after-tax charge linked to this failure as well as costs related to Coleco. Furthermore, LJN’s Entertech water guns attracted criticism because their realistic appearance led to several fatal incidents where police mistook them for actual firearms; this resulted in design modifications and bans across multiple regions.

During his seven-month tenure as president from 1989 to 1990, Lawrence J. Kirk Jr. implemented significant cost reductions that included laying off half of LJN’s employees. The company also sought to acquire Buddy L, but negotiations were halted when MCA disclosed its intention to sell LJN.

Acclaim Entertainment ownership (1990–2000)

Following Acclaim's acquisition of LJN, the toy division was discontinued as the company redirected its efforts toward video game publishing. This transition involved reducing staff by 45 out of 70 employees and moving LJN's headquarters from Lyndhurst, New Jersey, to Oyster Bay, New York, to consolidate operations with Acclaim's main office.

In 1990, Lawrence Kanaga initiated legal action representing Clark Thiemann against LJN, Nintendo, and Major League Baseball. The lawsuit alleged deceptive advertising concerning the game Major League Baseball, asserting that it was marketed as a comprehensive managerial simulation with full player rosters but only included uniform numbers.

The U.S. Consumer Product Safety Commission recalled LJN’s Sling 'Em-Fling 'Em wrestling ring toys in 1991 after reports of injuries among children aged six to ten. These toys, licensed from the World Wrestling Federation, had sold approximately 1.4 million units between 1985 and 1989.

LJN was shuttered by Acclaim in 1994; however, the brand was later resurrected for the release of Spirit of Speed 1937 in 2000.

Games

Title	Platform(s)	Release date	Developer(s)
Gotcha! The Sport!	Nintendo Entertainment System	1987	Atlus
Jaws
The Karate Kid
Major League Baseball		1988
Town & Country Surf Designs: Wood & Water Rage			Sanritsu Denki
Back to the Future		1989	Beam Software
Friday the 13th			Atlus
NFL
The Uncanny X-Men
Who Framed Roger Rabbit			Rare
The Amazing Spider-Man	Game Boy	1990
Back to the Future Part II & III	Nintendo Entertainment System		Beam Software
A Nightmare on Elm Street			Rare
Pictionary			Software Creations
The Punisher			Beam Software
WWF WrestleMania Challenge			Rare
Roger Clemens' MVP Baseball	Nintendo Entertainment System Super Nintendo Entertainment System Game Boy	1991	Sculptured Software
Wolverine	Nintendo Entertainment System		Software Creations
Beetlejuice	Nintendo Entertainment System	1991, May	Rare
Beetlejuice	Game Boy	1992, January 3	Rare
WWF Superstars	Game Boy	1991	Rare
NBA All-Star Challenge	Super Nintendo Entertainment System	1992	Beam Software
Spider-Man and the X-Men in Arcade's Revenge	Nintendo Entertainment System		Bits Studios	-	Spider-Man and Venom: Maximum Carnage	Super Nintendo Entertainment System	rowspan=2| Software Creations	-	Terminator 2	rowspan=2| Nintendo Entertainment System	-	Town & Country II: Thrilla's Surfari	rowspan=4| Sculptured Software	-	WWF Superstars 2	Game Boy	-	WWF Super WrestleMania	Super Nintendo Entertainment System	-	rowspan=2| WWF WrestleMania: Steel Cage Challenge	Nintendo Entertainment System Master System Game Gear	rowspan="5"|1993	Teeny Weeny Games	-	Alien 3	Nintendo Entertainment System	Probe Software	-	Terminator 2	Super Nintendo Entertainment System	Bits Studios	-	WWF King of the Ring	Nintendo Entertainment System Game Boy	Gray Matter Eastridge Technology	-	WWF Royal Rumble	Super Nintendo Entertainment System	Sculptured Software	-	Spider-Man and the X-Men in Arcade's Revenge	Game Boy	rowspan=4 | 1994	Unexpected Development	-	Spider-Man and Venom: Maximum Carnage	rowspan=2 | Super Nintendo Entertainment System	Software Creations	-	Wolverine: Adamantium Rage	Bits Studios	-	WWF Raw (1994 video game)	Super Nintendo Entertainment System Game Boy	Sculptured Software Realtime Associates	-	Spirit of Speed 1937	Dreamcast	2000	Broadsword Interactive	-