The toy & Video game business was never the same!
The first person account of the toy business and it's evolution
Thomas Kalinske
Decisions: Leadership Happens Beyond Consensus
- Tom Kalinske is a Venture Partner at Alsop Louie Partners, a venture capital firm with specialized experience in new media, gaming, security and mobile.
- He is currently on the board of Teach the World foundation, Storyworld, and Stiched Insights.
- He has held CEO positions at Sega of America, Inc., Universal Matchbox Group, Mattel, Inc., Global Education Learning and LeapFrog, where he worked to build some of the best known brands for kids and teens (Barbie, Hot Wheels, See N' Say, Masters of the Universe, Matchbox, Sega Genesis, Sonic the Hedgehog, LeapFrog, etc.).
- For his work at these companies, he was inducted into the Toy Industry Hall of Fame in 1997 and served as TIA Board Chairman in 1988.
- Tom has a BS from University of Wisconsin, an MBA from University of Arizona, and attended Harvard Graduate Business School's strategic management program.
- In 2022, Tom was inducted into the International Video Game Hall of Fame.
Barbie History
* Born and raised in Tucson, Arizona, where he sang with the Tucson Boys Chorus, touring across the US, Canada, and Australia
* Education:
- Bachelor of Science from University of Wisconsin
- MBA from University of Arizona
* Early Career:
- Started at JWT in NYC, developing new products including Chunk King Frozen Egg Rolls and Flintstones Vitamins for Miles Labs
* Mattel Career (1973-1987):
- Began as Product Manager for Preschool Toys
- Led the Barbie division, growing it from $42M to $350M
- Became VP in 1975, overseeing all toys by 1976
- Spearheaded the development of He-Man and the Masters of the Universe franchise
- Rose to President of Toy Division, building it to $1.5B
- Appointed Co-CEO of Mattel in 1985
Barbie History
Flies Like a Butterfly
Part of a National Flintstones Vitamins promotion included an appearance from Muhammad Ali. The Heavyweight Champion of the world was stepping in to assist. It was a late Friday afternoon when I got the call.
"Tom?" It was my boss. "Muhammad is coming to see you!" He sounded exasperated. "We owe him twenty-five thousand dollars. Do you think you can get him a check before the end of the day?"
I heard panic in his voice. "No problem," I said. Then my phone rang again.
"Tom, Muhammad Ali is here!"
That was quick! "Tell him I'll be right down."
"Too late."
I heard the heavy, confident steps coming up the stairs, multiple flights of a steady drum beat getting louder as if war approached. I imagined a scenario where Muhammad Ali was coming to beat me up, unless I could stand my ground against the Champion of the World!
The moment I saw his beautiful smile, I instantly remembered what an absolutely lovely person Muhammad Ali was. He reached out his hand while saying my name. We gripped hands and shook.
His hands were feverishly warm, almost hot. The grip was as tight as you can imagine but his palm was pillow soft. Through his hand and the shaking, I could feel his greatness.
"Tom! Where's my twenty-five thousand dollars?" he asked.
His hand still gripped mine, tugging me a bit on each syllable he spoke. I remembered his hands were capable of magic, not just in the ring, but with coins or cards. He was, among many things, a master of sleight of hand.
I looked at the clock—4:50 pm. "We've got to go, Muhammad, across the street to the bank. I'll have a bank check drawn up."
"Check? No, that ain't gonna work. I need cash! I'm going to the Bahamas!"
We ran across the street to the bank, which was already closed. I knocked on the door while looking through the glass. I saw the bank manager who apparently couldn't hear my knocking. Then Muhammad gave a few knocks. That got the bank manager's attention.
He opened the door and recognized us both. I explained the predicament we were in, and without a moment's delay, the bank manager said, "Well, that shouldn't be a problem. What was it? Twenty-five thousand dollars?"
He let us in, and we both walked up to a teller window. The bank was empty.
I turned to Muhammad who looked pleased and said, "Bahamas..."
The bank manager returned with stacks of money—stacks of 100-dollar bills. He began to drop the stacks on the teller tray in front of us. Muhammad started to collect them. Then, I almost didn't notice him palm a stack and flick it up his sleeve, completely out of sight. Very impressive sleight of hand.
The bank manager finished his counting, then Muhammad took his turn and counted the stacks in front of him.
"Twenty-three, twenty-four... Hey, there's only twenty-four here!"
The bank manager turned white looking at the piles. Muhammad reached through the teller window and grabbed hold of the bank manager's tie. Muhammad snapped the bank manager's head forward and breathily said to his face, "You trying to rip me off, white boy?!"
There was a moment where even I thought Muhammad might be serious, but then a huge smile appeared on his beautiful face.
"I'm just messin' with ya!"
We all three laughed, eventually. It took the bank manager a moment.
***
Many years later, I was able to work with Muhammad Ali again. At SEGA, we were about to publish a boxing game, and Muhammad came to help me promote it. I reminded him of that story of his twenty-five thousand dollars. When he remembered, he gestured for me to bend down. Muhammad was dealing with Parkinson's, so his speaking voice was low. He said:
"I was bad back in those days!"
Then he started to laugh, and I did too.
From Toys to Videogames and Learning Machines
- ◦ Matchbox (1987-1990):
- ▪ Partnered with David Yeh acquire Matchbox toys from receivership
- ▪ Successfully turned the company around to profitability
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- ◦ Served as CEO of Sega of America (1990-1996)
- ▪ Grew the company to $1.5B in US and $900M in Europe
- ▪ Oversaw the development and success of Sonic the Hedgehog
- ▪ Sega grew to 56% market share passing Nintend
- ▪ Pioneered the industry's first game rating system
- ▪ Helped establish E3 and the video game industry association
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From Toys to Videogames and Learning Machines
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- ◦ Knowledge Universe (1996-2005):
- ▪ Joined with Larry Ellison and Mike Milken as CEO
- ▪ Started or acquired over 30 education technology companies
- ▪ Served as CEO of Leapfrog, taking it public in 2002
- ▪ Grew Leapfrog from $350M to $650M in revenue
- ▪ Significant contributions to educational technology advancement
Boards I've Served and am Serving on
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- MattelNYSE 1983-87
- Universal Matchbox Group NYSE 1987-90
- SEGA of AmericaTokyo Excchange 1990-96
- Knowledge UniversePrivate 1996-2005
- LeapFrogTook Puplic NYSE 1996-2006
- CRT/Spring, Prod PointCRT/Spring on London Exchange 1996-2016
- GEL Private 2010-2020
- Teach the World Foundation (TTWF)Private 2015-Now
- Story WorldPrivate 2016-Now
- Stitched Insights Private 2016-Now
- University Of Arizona Business School Foundation 2014-2018
- University of Wisconsin School of BusinessFoundation 2018-2024
- University of Wisconsin Center for Ed Foundation 2018-Now
- Mixed Dimensions (MXD)Private 2018-2021
- The Strong Museum Private 2012-Now
Writing my Book!
* Current Activities:
- Board member of Leapfrog
- Board member of Cambium Learning Group
- Chairman of Global Education Learning
- Focuses primarily on educational technology companies
* Personal Life:
- Met his wife Karen at Mattel
- Father of six children
- Passionate about using technology to improve education
* Notable Achievements:
- Transformed multiple major brands and companies
- Pioneered developments in both the toy and video game industries
- Instrumental in expanding video gaming to adult audiences
- Significant contributions to educational technology advancement