Jakks Pacific

Lore & Background

Jack Friedman and Stephen Berman co-founded Jakks Pacific in January 1995. The company's first master toy license was a seven-year deal with the World Wrestling Federation (WWF) to produce figurines and playsets; this deal was extended in July 1998 to December 2009. In early 2002, Jakks began developing its own handheld TV games called Plug-&-Play TV Games, which plugged directly into a television. The original TV Games device sold over 350,000 units, and by 2004 the series had sold 1 million units; the Pac-Man TV Games alone sold over 15 million units.

In December 2002, FUNimation Entertainment awarded Jakks Pacific the master toy license for Dragon Ball, Dragon Ball Z, and Dragon Ball GT. The company expanded through numerous acquisitions, including the defunct Remco brand in 1997, Toymax International in 2002, Trendmasters in 2003, and Play Along Toys in 2004. In February 2005, Jakks Pacific was instructed to restate its financial statements for fiscal year 2003 to account for the acquisition of Toymax, Trendmasters, and P&M Products.

Jakks Pacific entered into a joint-license agreement with THQ in June 1998 to release WWF video games, with publishing handled by THQ and development by Yuke's. In October 2004, the renamed WWE filed a lawsuit alleging that both parties had given bribes to WWF executive Jim Bell and agent Stanley Shenker to hide superior pitches from other publishers. The federal suit was dismissed in December 2007, the state court litigation in August 2008, and an appeal was dismissed in May 2009. In December 2009, WWE announced settlement without any party admitting wrongdoing; Bell and Shenker had both pleaded guilty to fraud elsewhere in the WWF involving illegitimate kick-back schemes. The joint-license agreement ended in 2009, and THQ signed a new eight-year video game license with WWE without Jakks Pacific.

Reader's Guide

Jakks Pacific's significance lies in its ability to secure major entertainment licenses and produce a wide range of toys, from action figures to electronic games. The company's Plug-n-Play TV Games line was a notable success in the 2000s, with the Pac-Man variant selling over 15 million units. Its history includes a long association with WWE (formerly WWF), which began with its first master toy license in 1995 and continued through various agreements, including a 2015 deal for the Asian-Pacific region. The company also expanded through acquisitions, building a portfolio that included costume maker Disguise, acquired in 2008 and again in 2018. Jakks Pacific's legacy includes partnerships with major franchises such as Pokémon, Dragon Ball, and The Super Mario Bros. Movie, as well as ventures into animation through joint ventures like Pacific Animation Partners and Studio JP. The company's financial history includes a 2005 restatement of 2003 financials related to acquisitions, and litigation with WWE that was settled without admission of wrongdoing.

Did You Know?

• Jakks Pacific was co-founded by Jack Friedman, who had previously founded LJN and THQ.
• The original Plug-n-Play TV Games device sold over 350,000 units.
• The company acquired the Halloween costume and decor manufacturer Disguise in 2008 and again in 2018.