Elmo was very tickled last week. Mattel, the world's largest toy company, announced that it is becoming even bigger by joining Elmo's maker, Tyco Toys. Mattel makes Barbie, Fisher-Price toys and Hot Wheels. Tyco makes Sesame Street toys and Matchbox cars.

"The merger of these companies," said Mattel president Jill E. Barad, "will be an excellent fit."

The news is not all fun and games. Mattel said 2,700 people will lose their jobs when the company is reorganized.

Daily News from TIME for Kids

April 4, 1997 World Report