The way MGA Entertainment Chief Executive Isaac Larian tells it, he got into the toy business because he rarely had toys of his own as a child. Growing up in an impoverished area of Iran, Larian became “fascinated by toys,” and 44 years ago launched Chatsworth-based toymaker MGA.
Today, MGA distributes more than 15 toy brands, including household names such as Bratz and Little Tikes. Last November, Larian spearheaded the launch of MGA Studios, run by his son Jason Larian. MGA Studios launched with $500 million in funding, and last fall acquired Australia-based animation studio Pixel Zoo for an undisclosed sum in a bid to create kid-friendly digital entertainment.
Larian told Variety last year that MGA brings in about $4.5 billion in retail sales annually and manages 25 brands that have done more than $100 million in lifetime sales.
Which family members do you work alongside, and what are the pros and cons of working with family?
I work with my son and my sisters and brothers. We have a diverse business; we have real estate, travel and sales. It has its challenges, especially if you’re an owner (or) CEO of a company, it has a psychological effect on the family members, but then we’re lucky to have a good family. And they’re collaborative and helping, so I credit them with some of our success. There has to be really from the beginning some parameters and boundaries, and people stay in their lane, and respecting each other. And as you age, your ego and a lot of other things get deflated.
How do you handle the issue of succession?
We have set up a structure that if I’m not here the family as a group will really take over together with professional managers. Everybody must understand that the business is paramount and is more important than anything else, because it provides a livelihood for the family.
Did the pandemic change anything about your business or the family structure?
For the most part, we didn’t have a lot of retail worker reduction, because we are the most innovative toy company out there, and we let innovation and newness drive our business. The only effect was, it was a pain to work from home because the toy business is people-related. You got to meet with people in person and discuss ideas. That’s the only thing we missed.
Are you considering retiring anytime soon?
No. I think the business keeps me young and keeps me going. I am enjoying what I’m doing for the most part.