Editing LJN (section)

===MCA ownership (1985–1990)===
On March 26, 1985, [[MCA Inc.]] announced that it would purchase 63% of LJN's shares for $39.8 million and proposed to buy the remainder of the stock for $14.26 for each share which would increase the total value of the deal to almost $65 million.<ref>{{Cite news |date=March 27, 1985 |title=MCA Agrees to Acquire L.J.N. Toys : Entertainment Firm to Exchange Up to $39.8 Million in Stock |url=https://www.latimes.com/archives/la-xpm-1985-03-27-fi-20221-story.html |url-status=live |archive-url=https://web.archive.org/web/20220316073228/https://www.latimes.com/archives/la-xpm-1985-03-27-fi-20221-story.html |archive-date=March 16, 2022 |work=[[Los Angeles Times]]}}</ref> However, the company failed to make a net income from 1986 to 1989, and MCA had to take a $53 million [[NOPAT|after-tax charge]] due to the expenses of the company before selling it to [[Acclaim Entertainment]] for $30 million in April 1990.<ref name="acclaim" /><ref>{{Cite news |date=January 23, 1990 |title=Company News; MCA Taking Loss in Sale of Toy Unit |url=https://www.nytimes.com/1990/01/23/business/company-news-mca-taking-loss-in-sale-of-toy-unit.html |url-status=live |archive-url=https://web.archive.org/web/20220320043118/https://www.nytimes.com/1990/01/23/business/company-news-mca-taking-loss-in-sale-of-toy-unit.html |archive-date=March 20, 2022 |access-date=March 20, 2022 |work=[[The New York Times]]}}</ref><ref>{{Cite news |date=July 25, 1990 |title=Acclaim Says LJN Suit Is MCA's Problem |url=https://www.newspapers.com/clip/98045799/chicago-tribune/ |url-status=live |archive-url=https://web.archive.org/web/20220321010208/https://www.newspapers.com/clip/98045799/chicago-tribune/ |archive-date=March 21, 2022 |access-date=March 21, 2022 |work=[[Chicago Tribune]] |page=31 |via=[[Newspapers.com]]}}</ref> LJN had a revenue of $110,510,000 and a net loss of $37.3 million in 1987.<ref>{{Cite news |date=June 29, 1988 |title=MCA to Take $35-Million Charge in Quarter |url=https://www.newspapers.com/clip/98045694/the-los-angeles-times/ |url-status=live |archive-url=https://web.archive.org/web/20220321003428/https://www.newspapers.com/clip/98045694/the-los-angeles-times/ |archive-date=March 21, 2022 |access-date=March 21, 2022 |work=[[Los Angeles Times]] |page=12 |via=[[Newspapers.com]]}}</ref> MCA received 1.2 million shares in Acclaim as part of the LJN deal. 181,000 shares were returned as part of a price adjustment agreement and the remainder was sold for around $4.3 million in 1991.<ref>{{Cite news |date=October 18, 1991 |title=MCA Sells Stake In Acclaim Inc. |page=47 |work=[[Newsday]] |url=https://www.newspapers.com/article/newsday-suffolk-edition/154431251/ |url-status=live |archive-url=https://web.archive.org/web/20240901172459/https://www.newspapers.com/article/newsday-suffolk-edition/154431251/ |archive-date=September 1, 2024 |via=[[Newspapers.com]]}}</ref>

LJN entered the video game industry by publishing games based on movies and television shows developed by companies including [[Atlus]], [[Beam Software]], and [[Rare (company)|Rare]] for the [[Nintendo Entertainment System]] in 1987.<ref>{{Cite book |title=The Routledge Companion to Adaptation |date=2018 |publisher=[[Taylor & Francis]]}}</ref> The company released the [[LJN Video Art]] in 1987.<ref>{{Cite news |date=September 3, 1989 |title='Hands On' Approach to Kids' Videos |url=https://www.newspapers.com/clip/97921981/wisconsin-state-journal/ |url-status=live |archive-url=https://web.archive.org/web/20220319212800/https://www.newspapers.com/clip/97921981/wisconsin-state-journal/ |archive-date=March 19, 2022 |access-date=March 19, 2022 |work=[[Wisconsin State Journal]] |page=132 |via=[[Newspapers.com]]}}</ref><ref>{{Cite news |date=November 5, 1988 |title=Patents; Device Converts TV Set into a Coloring Book |url=https://www.nytimes.com/1988/11/05/business/patents-device-converts-tv-set-into-a-coloring-book.html |url-status=live |archive-url=https://web.archive.org/web/20220319215047/https://www.nytimes.com/1988/11/05/business/patents-device-converts-tv-set-into-a-coloring-book.html?searchResultPosition=33 |archive-date=March 19, 2022 |access-date=March 19, 2022 |work=[[The New York Times]]}}</ref> At least 75% of the company's $70 million in sales in 1990 came from video game sales on the Nintendo Entertainment System and [[Game Boy]].<ref name="acclaim">{{Cite news |date=March 13, 1990 |title=MCA in Pact with Acclaim |url=https://www.nytimes.com/1990/03/13/business/mca-in-pact-with-acclaim.html |url-status=live |archive-url=https://web.archive.org/web/20220320042652/https://www.nytimes.com/1990/03/13/business/mca-in-pact-with-acclaim.html |archive-date=March 20, 2022 |access-date=March 20, 2022 |work=[[The New York Times]]}}</ref><ref>{{Cite news |date=March 13, 1990 |title=LJN |page=C2 |work=[[The Record (North Jersey)|The Record]] |url=https://www.newspapers.com/article/the-record/154430099/ |url-status=live |archive-url=https://web.archive.org/web/20240901170656/https://www.newspapers.com/article/the-record/154430099/ |archive-date=September 1, 2024 |via=[[Newspapers.com]]}}</ref>

The company released a paint gun line named Gotcha! with a license from the film ''[[Gotcha! (film)|Gotcha!]]'', but this line were criticized by [[consumer protection]] groups due to the danger it posed to eyes.<ref>{{Cite news |date=November 17, 1987 |title=Group Criticizes 'Gotcha!' Gun |url=https://www.upi.com/Archives/1987/11/17/Group-criticizes-Gotcha-gun/5494564123600/ |url-status=live |archive-url=https://web.archive.org/web/20220316073139/https://www.upi.com/Archives/1987/11/17/Group-criticizes-Gotcha-gun/5494564123600/ |archive-date=March 16, 2022 |work=[[United Press International]]}}</ref> The toyline was financially unsuccessful, and MCA had to take a $35 million after-tax charge due to its failure and the expenses of the [[Coleco]].<ref>{{Cite news |date=June 30, 1988 |title=Company News |url=https://www.nytimes.com/1988/06/30/business/company-news-861788.html |url-status=live |archive-url=https://web.archive.org/web/20220320042236/https://www.nytimes.com/1988/06/30/business/company-news-861788.html |archive-date=March 20, 2022 |access-date=March 20, 2022 |work=[[The New York Times]]}}</ref> The company was also criticized by police officers and [[Americans for Democratic Action]] for its [[Entertech]] line of toy water guns due to how realistic they looked; LJN changed the design of the toys after three people in the United States from ages 13 to 19 were killed as a result of police officers thinking they had actual guns, and multiple cities and states banned the sale of realistic toy guns.<ref>{{Cite news |date=August 12, 1985 |title=Realistic Toy Guns Create Worries for Police |url=https://www.newspapers.com/clip/97921885/the-record/ |url-status=live |archive-url=https://web.archive.org/web/20220320041955/https://www.newspapers.com/clip/97921885/the-record/ |archive-date=March 20, 2022 |work=[[The Record (North Jersey)|The Record]] |page=9 |via=[[Newspapers.com]]}}</ref><ref>{{Cite news |date=August 12, 1986 |title=Realistic Toy Guns Worry Police |url=https://www.newspapers.com/clip/97921889/the-record/ |url-status=live |archive-url=https://web.archive.org/web/20220320042058/https://www.newspapers.com/clip/97921889/the-record/ |archive-date=March 20, 2022 |work=[[The Record (North Jersey)|The Record]] |page=8 |via=[[Newspapers.com]]}}</ref><ref>{{Cite news |date=June 16, 1988 |title=After 3 Deaths, Realistic Toys Are Under Fire |url=https://www.nytimes.com/1988/06/16/garden/after-3-deaths-realistic-toys-are-under-fire.html |url-status=live |archive-url=https://web.archive.org/web/20220320041732/https://www.nytimes.com/1988/06/16/garden/after-3-deaths-realistic-toys-are-under-fire.html |archive-date=March 20, 2022 |access-date=March 20, 2022 |work=[[The New York Times]]}}</ref>

Lawrence J. Kirk Jr. fired half of the company's employees as part of a cost-cutting plan during his seven months as president from 1989 to 1990. LJN attempted to acquire [[Buddy L]] during his tenure, but MCA ended the negotiations before announcing that it was selling LJN.<ref>{{Cite news |date=January 10, 1990 |title=LJN Toys rethinks game plan |page=E1 |work=[[The Record (North Jersey)|The Record]] |url=https://www.newspapers.com/article/the-record/155071355/ |url-status=live |archive-url=https://web.archive.org/web/20240913083624/https://www.newspapers.com/article/the-record/155071355/ |archive-date=September 13, 2024 |via=[[Newspapers.com]]}}</ref><ref>{{Cite news |date=February 28, 1990 |title=New worlds to conquer |page=E1 |work=[[The Record (North Jersey)|The Record]] |url=https://www.newspapers.com/article/the-record/155071349/ |url-status=live |archive-url=https://web.archive.org/web/20240913083529/https://www.newspapers.com/article/the-record/155071349/ |archive-date=September 13, 2024 |via=[[Newspapers.com]]}}</ref>