00:00So, if I could ask you the obvious question, what is somebody who was born in Israel, educated
00:06to some extent in the United States, and really a media executive doing running a toy company?
00:11Well, the opportunity was to take a company that thought it's a toy manufacturing company
00:17and turn it into an IP company.
00:20We own one of the strongest portfolios in the world in children and family entertainment.
00:25And the opportunity that I saw that excited me was to come in and help the company capitalize
00:31and capture the full value of our intellectual properties outside of the toy aisle.
00:36Not instead of what we do in toys, but in addition to that.
00:40So when you were recruited to run Mattel, they had already had a lot of CEOs who didn't last.
00:45So why would you take this job?
00:47Yes, being the fourth CEO in four years is a challenging start.
00:53But I always believed in the company, I believed in the brands, and I really saw the potential
00:58of taking a company that thought it's in the manufacturing business and turn it to become
01:04an IP company.
01:06And today, we are evolving even further from being an IP company to being a brand management
01:11company.
01:12And in a world where everything revolves around big brands, this is a very exciting opportunity.
01:19You're a toy manufacturer, but what percentage of your revenues, let's say five years from
01:24now, would you like to actually have revenues and earnings coming from non-toys, let's say
01:30pictures or motion picture, television, things like that?
01:33We expect a significant amount of profit to come through entertainment.
01:37This is all of the activities around the brands in our IP.
01:43Most of this business is royalty driven.
01:47So you see most of the lift in profit, some in revenue, but mostly in profit.
01:52So much higher margin and better quality profit and growing at a significant rate.
01:58So much higher margin of profit.
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