1 00:00:08,342 --> 00:00:10,153 -It was a Beanie Baby backup on Interstate 285 West. 2 00:00:10,177 --> 00:00:14,115 {\an1}- Oh, my God, the guy's stopping! - It was no longer a child's toy. 3 00:00:14,139 --> 00:00:16,451 It was the thrill of the hunt for me then. 4 00:00:16,475 --> 00:00:18,328 - You're how old? - 20. 5 00:00:18,352 --> 00:00:20,914 -It kind of got addictive. 6 00:00:20,938 --> 00:00:24,918 -At the height of America's rising prosperity in the '90s, 7 00:00:24,942 --> 00:00:29,214 the frenzy over a new toy mirrors the stock market. 8 00:00:29,238 --> 00:00:31,257 [ Indistinct shouting ] 9 00:00:31,281 --> 00:00:33,885 - They want Beanie Babies. - A Beanie Baby. 10 00:00:33,909 --> 00:00:36,930 -The wolves on this Wall Street may be stuffed... 11 00:00:36,954 --> 00:00:38,264 -Ruff! 12 00:00:38,288 --> 00:00:39,641 - but they bite. 13 00:00:39,665 --> 00:00:42,101 -The homicidal, bloodthirsty... 14 00:00:42,125 --> 00:00:45,480 -Greedy, slimy people. 15 00:00:45,504 --> 00:00:49,234 -I think I'm through because it's getting out of hand. 16 00:00:49,258 --> 00:00:51,903 I am concerned. [ Children cheering ] 17 00:00:51,927 --> 00:00:54,739 {\an8}-But a kid's toy leading to counterfeiting... 18 00:00:54,763 --> 00:00:56,241 {\an8}-They only retail for $5, 19 00:00:56,265 --> 00:00:58,159 but some of these are a lot more valuable. 20 00:00:58,183 --> 00:01:00,620 - armed robbery and tax fraud... 21 00:01:00,644 --> 00:01:02,872 -No one is above the law, and everyone, 22 00:01:02,896 --> 00:01:05,917 including the wealthy, has to pay their dues. 23 00:01:05,941 --> 00:01:08,336 - and even murder. [ Gunshot ] 24 00:01:08,360 --> 00:01:11,172 -That's not far from the truth. 25 00:01:11,196 --> 00:01:19,196 {\an8}♪♪ 26 00:01:19,705 --> 00:01:21,474 [ Dial-up modem screeching ] 27 00:01:21,498 --> 00:01:29,498 {\an8}♪♪ 28 00:01:29,840 --> 00:01:32,402 {\an8}♪♪ 29 00:01:32,426 --> 00:01:35,822 {\an8}[ Dial-up modem screeching ] 30 00:01:35,846 --> 00:01:38,992 {\an8}[ Bell clanging ] 31 00:01:39,016 --> 00:01:40,576 -In the early '90s, 32 00:01:40,600 --> 00:01:43,538 as America is starting to dial up the Internet... 33 00:01:43,562 --> 00:01:45,331 [ Indistinct shouting ] 34 00:01:45,355 --> 00:01:46,958 the dot-com bubble 35 00:01:46,982 --> 00:01:50,128 that'll define the decade is just starting to inflate. 36 00:01:50,152 --> 00:01:54,716 -Wall Street believes that the Internet is the future. 37 00:01:54,740 --> 00:01:56,592 -In a Chicago suburb, 38 00:01:56,616 --> 00:02:00,471 an old-fashioned toymaker is quietly stitching a new creation 39 00:02:00,495 --> 00:02:02,974 that will give birth to a real-world frenzy 40 00:02:02,998 --> 00:02:06,269 and help launch the country into cyberspace. 41 00:02:06,293 --> 00:02:08,146 [ Children cheering ] 42 00:02:08,170 --> 00:02:12,567 His name is Ty Warner, and his invention is a pair of small, 43 00:02:12,591 --> 00:02:17,030 slightly understuffed plush animals... 44 00:02:17,054 --> 00:02:21,326 Brownie the Bear and Pinchers the Lobster. 45 00:02:21,350 --> 00:02:23,745 He calls them Beanie Babies. 46 00:02:23,769 --> 00:02:28,916 -A Beanie Baby is a bean bag filled with pellets 47 00:02:28,940 --> 00:02:31,377 that is shaped like an animal. 48 00:02:31,401 --> 00:02:33,129 My name is Lina Trivedi, 49 00:02:33,153 --> 00:02:36,132 {\an8}and I was the 12th employee to work at Ty. 50 00:02:36,156 --> 00:02:39,260 They were so bold and bright, they just stood out, 51 00:02:39,284 --> 00:02:43,306 with these facial features that will just capture you 52 00:02:43,330 --> 00:02:46,059 and just make you fall in love with it. 53 00:02:46,083 --> 00:02:49,103 -Here is Peanut, the royal blue elephant. 54 00:02:49,127 --> 00:02:50,438 The magenta teddy. 55 00:02:50,462 --> 00:02:52,690 Lots of people came up with clothes. 56 00:02:52,714 --> 00:02:54,984 [ Laughs ] 57 00:02:55,008 --> 00:03:00,031 I don't think you can look at a Beanie Baby and not smile. 58 00:03:00,055 --> 00:03:05,370 {\an8}My name is Mary Beth Sobolewski, and I am a self-proclaimed 59 00:03:05,394 --> 00:03:07,330 Beanie Baby addict. 60 00:03:07,354 --> 00:03:09,415 And I was also editor in chief 61 00:03:09,439 --> 00:03:12,710 of Mary Beth's Beanie World magazine. 62 00:03:12,734 --> 00:03:15,713 -I never want people to forget 63 00:03:15,737 --> 00:03:20,718 that these were beautiful plush toys. 64 00:03:20,742 --> 00:03:22,261 {\an8}-My name is Mark Bellomo, 65 00:03:22,285 --> 00:03:26,057 {\an8}and I'm a toy and pop culture expert. 66 00:03:26,081 --> 00:03:27,642 Let's get this out of the way. 67 00:03:27,666 --> 00:03:29,519 I own about 100,000 action figures 68 00:03:29,543 --> 00:03:31,979 and about 250,000 comics. 69 00:03:32,003 --> 00:03:34,023 And I own every figure, vehicle, weapon, accessory, 70 00:03:34,047 --> 00:03:37,068 creature, playset, mail-away, and promotional 71 00:03:37,092 --> 00:03:39,404 for every action-figure line that's been made 72 00:03:39,428 --> 00:03:42,240 since 1964. 73 00:03:42,264 --> 00:03:45,576 -When Ty Warner officially launches Beanie Babies, 74 00:03:45,600 --> 00:03:47,870 there are nine animals in the collection, 75 00:03:47,894 --> 00:03:53,418 each with a heart-shaped tag bearing his first name. 76 00:03:53,442 --> 00:03:55,753 -The sales strategy, as I understood it, 77 00:03:55,777 --> 00:03:58,714 was, this was something that was special, 78 00:03:58,738 --> 00:04:00,967 and in order for it to be deemed as special, 79 00:04:00,991 --> 00:04:03,761 you wouldn't find it at a big-box retailer. 80 00:04:03,785 --> 00:04:08,057 You would go to those small mom-and-pop shops. 81 00:04:08,081 --> 00:04:12,061 -But many storeowners initially refused to stock Beanie Babies, 82 00:04:12,085 --> 00:04:17,066 and his competitors reportedly dismissed the toys as roadkill. 83 00:04:17,090 --> 00:04:20,153 -They started production in '93. 84 00:04:20,177 --> 00:04:21,320 Nobody cared. 85 00:04:21,344 --> 00:04:23,948 '94, nobody cared. 86 00:04:23,972 --> 00:04:27,160 -But anyone who picked up a Beanie Baby 87 00:04:27,184 --> 00:04:29,162 couldn't seem to put it down. 88 00:04:29,186 --> 00:04:31,164 -It was really difficult to walk past a table 89 00:04:31,188 --> 00:04:33,708 without just picking them up and, you know, 90 00:04:33,732 --> 00:04:36,085 bouncing them around. 91 00:04:36,109 --> 00:04:39,630 It was addicting to just be handling them. 92 00:04:39,654 --> 00:04:41,799 -I'll use a French word. Their puissance, 93 00:04:41,823 --> 00:04:46,762 their purity really made people take notice. 94 00:04:46,786 --> 00:04:50,308 And that's what I've always really appreciated 95 00:04:50,332 --> 00:04:53,436 about Ty Warner as a designer. 96 00:04:53,460 --> 00:04:56,939 {\an8}♪♪ 97 00:04:56,963 --> 00:04:58,649 [ Indistinct shouting ] 98 00:04:58,673 --> 00:05:03,279 -By Christmas of '95, regionally in Chicago, 99 00:05:03,303 --> 00:05:06,240 where their headquarters was, people cared. 100 00:05:06,264 --> 00:05:08,659 -I think they're fun to collect. 101 00:05:08,683 --> 00:05:10,495 -Now, two years into production, 102 00:05:10,519 --> 00:05:12,622 Ty is selling the $5 Beanies 103 00:05:12,646 --> 00:05:16,209 at select gift shops around Chicago. 104 00:05:16,233 --> 00:05:17,793 -That's here. 105 00:05:17,817 --> 00:05:19,837 -The company is also turning out many new characters, 106 00:05:19,861 --> 00:05:24,842 but exactly how many is a company secret. 107 00:05:24,866 --> 00:05:28,346 One that's designed to cultivate demand. 108 00:05:28,370 --> 00:05:32,850 -Well, collectors wanted them all. 109 00:05:32,874 --> 00:05:35,353 Wouldn't you want them all? 110 00:05:35,377 --> 00:05:37,563 -I'm gonna get the... the weenie dog. 111 00:05:37,587 --> 00:05:39,815 -It was so fun to be with our kids, 112 00:05:39,839 --> 00:05:43,027 going store to store, having a little checklist, 113 00:05:43,051 --> 00:05:44,987 and bonding together. 114 00:05:45,011 --> 00:05:46,531 - Smoochy. - This is Legs. 115 00:05:46,555 --> 00:05:48,324 -This is Ally. 116 00:05:48,348 --> 00:05:52,119 -As the little group started collecting, it just caught on. 117 00:05:52,143 --> 00:05:53,496 -I need to take some to Michigan. 118 00:05:53,520 --> 00:05:55,206 They can't seem to find them up there. 119 00:05:55,230 --> 00:05:57,208 - Really? - Yeah. Very short. 120 00:05:57,232 --> 00:06:01,212 -Your friends had the ones that you were missing. 121 00:06:01,236 --> 00:06:03,214 It made you want them. 122 00:06:03,238 --> 00:06:04,882 -Goldie! We don't have Goldie! Yes! 123 00:06:04,906 --> 00:06:06,175 -Why are they selling them so cheap? 124 00:06:06,199 --> 00:06:08,719 - There aren't cheap. - [ Laughs ] 125 00:06:08,743 --> 00:06:11,138 {\an8}-I was going by a collectible store, 126 00:06:11,162 --> 00:06:14,433 {\an8}gift shops in the area. They were more prevalent then. 127 00:06:14,457 --> 00:06:15,893 {\an8}And I looked in the window, 128 00:06:15,917 --> 00:06:17,895 {\an8}and there were these beautiful butterflies. 129 00:06:17,919 --> 00:06:21,482 So I went, and I purchased three of the Flitter butterflies 130 00:06:21,506 --> 00:06:23,651 and then purchased 10 other Beanies. 131 00:06:23,675 --> 00:06:25,403 And I brought them home, and my daughter 132 00:06:25,427 --> 00:06:27,446 fell in love with them. 133 00:06:27,470 --> 00:06:31,534 I'm Becky Phillips, and my whole life in the 1990s 134 00:06:31,558 --> 00:06:37,123 between 1995 and 2000 was involved with Beanie Babies. 135 00:06:37,147 --> 00:06:40,459 [ Crowd chanting in native language ] 136 00:06:40,483 --> 00:06:44,088 -Toys in the '80s were conflict-based. 137 00:06:44,112 --> 00:06:48,426 The age of the Cold War and Ronald Reagan, 138 00:06:48,450 --> 00:06:52,305 so we had a lot of toy lines 139 00:06:52,329 --> 00:06:55,057 that were good guys versus bad guys. 140 00:06:55,081 --> 00:06:57,768 -You got to get up early to catch Cobra. 141 00:06:57,792 --> 00:06:59,729 -Cobra Commander and G.I. Joe figures... 142 00:06:59,753 --> 00:07:04,775 -Where in the 1990s, the Berlin Wall falls. 143 00:07:04,799 --> 00:07:10,281 You don't have that Communist other anymore. 144 00:07:10,305 --> 00:07:13,618 You have a period of relative prosperity. 145 00:07:13,642 --> 00:07:16,037 [ Crowd cheering ] 146 00:07:16,061 --> 00:07:20,333 So when you're talking about a lot of these animal-based 147 00:07:20,357 --> 00:07:22,960 '90s action figure and toy lines, 148 00:07:22,984 --> 00:07:27,840 it was more based on whimsy than it was the real world. 149 00:07:27,864 --> 00:07:30,635 -The country in the middle of the decade looks different 150 00:07:30,659 --> 00:07:32,303 than it did at the start. 151 00:07:32,327 --> 00:07:36,140 The recession that got Bill Clinton elected is over. 152 00:07:36,164 --> 00:07:38,059 -There is no doubt that the economic strategy 153 00:07:38,083 --> 00:07:41,854 we put in place in 1993 created the conditions 154 00:07:41,878 --> 00:07:44,231 for the extraordinary private-sector growth 155 00:07:44,255 --> 00:07:45,816 we have all witnessed. 156 00:07:45,840 --> 00:07:49,403 -More Americans have jobs and are making more money. 157 00:07:49,427 --> 00:07:51,530 They're also beginning to dip their toes 158 00:07:51,554 --> 00:07:54,492 into the waters of the World Wide Web. 159 00:07:54,516 --> 00:07:56,786 -Tonight, the information superhighway 160 00:07:56,810 --> 00:07:58,746 and one of its main thoroughfares, 161 00:07:58,770 --> 00:08:01,165 an online network called Internet. 162 00:08:01,189 --> 00:08:05,628 -I was going to school full time at DePaul University 163 00:08:05,652 --> 00:08:07,755 and learned about the Internet 164 00:08:07,779 --> 00:08:10,383 through one of my college professors. 165 00:08:10,407 --> 00:08:14,011 So I was, like, kind of running things in my head, 166 00:08:14,035 --> 00:08:17,181 and I was like, "You know, we... We have these Beanie Babies, 167 00:08:17,205 --> 00:08:22,728 but people don't necessarily know what Beanie Babies exist." 168 00:08:22,752 --> 00:08:25,690 So I was like, "What if we just had a way 169 00:08:25,714 --> 00:08:29,944 that people can go to this website?" 170 00:08:29,968 --> 00:08:32,363 My brother was a senior in high school, 171 00:08:32,387 --> 00:08:34,949 so I just asked Ty, I said, "Hey, can I get some help? 172 00:08:34,973 --> 00:08:37,618 I think my brother can come in after school, 173 00:08:37,642 --> 00:08:41,122 and we can get things done quicker." 174 00:08:41,146 --> 00:08:45,584 I had the computer set up, and I just made a mock page. 175 00:08:45,608 --> 00:08:47,795 It had to have been the ugliest thing 176 00:08:47,819 --> 00:08:50,923 that anyone has ever seen on the Internet. 177 00:08:50,947 --> 00:08:53,509 And I called Ty into this little office 178 00:08:53,533 --> 00:08:55,386 that I had this computer set up in 179 00:08:55,410 --> 00:08:59,014 and said, "You know, this is the Internet." 180 00:08:59,038 --> 00:09:00,057 ♪ Ahh ♪ 181 00:09:00,081 --> 00:09:01,100 [ Laughs ] 182 00:09:01,124 --> 00:09:02,435 [ Dial-up modem screeching ] 183 00:09:02,459 --> 00:09:04,228 And he got it. 184 00:09:04,252 --> 00:09:06,355 He understood it right away. And he said, "You know, yeah. 185 00:09:06,379 --> 00:09:08,733 Why don't you put some time and work on it 186 00:09:08,757 --> 00:09:10,901 and just show me what you come up with?" 187 00:09:10,925 --> 00:09:13,988 [ Dial-up modem screeching ] 188 00:09:14,012 --> 00:09:18,075 -When Warner flips the switch on ty.com in late 1996, 189 00:09:18,099 --> 00:09:21,287 he makes Internet history. 190 00:09:21,311 --> 00:09:24,498 His website, designed far from Silicon Valley 191 00:09:24,522 --> 00:09:28,878 by Lina and her brother in high school, 192 00:09:28,902 --> 00:09:31,714 will accidentally create a reason companies 193 00:09:31,738 --> 00:09:35,676 {\an8}create websites... To sell things. 194 00:09:35,700 --> 00:09:38,512 {\an8}-Never at any point was the Ty website 195 00:09:38,536 --> 00:09:41,682 selling Beanie Babies directly to consumers. 196 00:09:41,706 --> 00:09:43,642 The website was designed as a tool 197 00:09:43,666 --> 00:09:46,187 to provide information on the product. 198 00:09:46,211 --> 00:09:49,440 {\an8}We had a blog, and we had a guest book, 199 00:09:49,464 --> 00:09:53,277 {\an8}and we had all these ways that people could interact. 200 00:09:53,301 --> 00:09:56,405 It wasn't like we, at the time were like, 201 00:09:56,429 --> 00:09:59,283 "We're gonna build the first business-to-consumer website. 202 00:09:59,307 --> 00:10:03,871 Let's do it." You know? It was just what happened. 203 00:10:03,895 --> 00:10:08,292 -We started to get on the website 204 00:10:08,316 --> 00:10:12,963 because that's all there was on the Internet. 205 00:10:12,987 --> 00:10:15,466 -But Ty's new Beanie Baby website 206 00:10:15,490 --> 00:10:17,343 takes on a life of its own. 207 00:10:17,367 --> 00:10:19,577 {\an8}[ Dial-up modem screeching ] 208 00:10:21,996 --> 00:10:23,432 {\an8}[ Mouse clicks ] 209 00:10:23,456 --> 00:10:25,851 {\an8}-So you were reaching out to different people 210 00:10:25,875 --> 00:10:29,021 {\an8}through chat rooms. 211 00:10:29,045 --> 00:10:30,815 {\an8}There were a lot of teenagers. 212 00:10:30,839 --> 00:10:32,525 {\an8}And instead of talking about Beanies, 213 00:10:32,549 --> 00:10:35,653 {\an8}all the teenagers were asking each other out online, 214 00:10:35,677 --> 00:10:38,531 {\an8}there was foul language on the site. 215 00:10:38,555 --> 00:10:40,991 {\an8}-And then people would sometimes be chatting back and forth. 216 00:10:41,015 --> 00:10:43,911 {\an8}Sometimes people would start arguing. 217 00:10:43,935 --> 00:10:47,164 -And so Ty Warner was very upset 218 00:10:47,188 --> 00:10:51,168 because nobody was really talking about Beanie Babies. 219 00:10:51,192 --> 00:10:55,738 So after four months, he closed it down. 220 00:10:58,408 --> 00:11:01,887 -This isn't the end of ty.com. 221 00:11:01,911 --> 00:11:04,098 -Hey, yo, deejay, hey, yo, deejay ♪ 222 00:11:04,122 --> 00:11:05,891 -Warner will relaunch it with a scheme 223 00:11:05,915 --> 00:11:08,686 that triggers a modern-day gold rush. 224 00:11:08,710 --> 00:11:11,897 -About every four months, they will retire a Beanie, 225 00:11:11,921 --> 00:11:14,149 so then prices will start immediately going up. 226 00:11:14,173 --> 00:11:16,110 -We could be millionaires! 227 00:11:16,134 --> 00:11:21,156 -But as Notorious B.I.G. will rap about in the '90s, 228 00:11:21,180 --> 00:11:24,410 mo' money, mo' problems. 229 00:11:24,434 --> 00:11:26,871 And it won't be long before a shadow falls 230 00:11:26,895 --> 00:11:31,292 over the sunny world of Beanie Babies. 231 00:11:31,316 --> 00:11:36,881 -Ty Warner had to take the Ty heart off of shipping boxes 232 00:11:36,905 --> 00:11:39,800 because they would assault UPS drivers. 233 00:11:39,824 --> 00:11:42,869 [ Siren wailing, police radio chatter ] 234 00:11:47,665 --> 00:11:49,059 -Such staggering amounts of money are being made 235 00:11:49,083 --> 00:11:51,854 by people who are so young. - Get used to it. 236 00:11:51,878 --> 00:11:55,566 -By 1996, there's a fever building in America. 237 00:11:55,590 --> 00:11:57,276 The Internet has arrived, 238 00:11:57,300 --> 00:12:00,905 and the stock of companies with a dot-com in their name 239 00:12:00,929 --> 00:12:03,908 is seen as can't miss by investors. 240 00:12:03,932 --> 00:12:05,534 -This is absolutely real. 241 00:12:05,558 --> 00:12:06,952 This is a revolution. 242 00:12:06,976 --> 00:12:09,038 -Seemingly overnight, 243 00:12:09,062 --> 00:12:13,083 speculators are making bank on dot-com stocks from companies 244 00:12:13,107 --> 00:12:16,378 that have yet to turn a profit. [ Applause ] 245 00:12:16,402 --> 00:12:20,257 With the Internet fast becoming the land of opportunity, 246 00:12:20,281 --> 00:12:22,927 Ty Warner's looking to stake his claim. 247 00:12:22,951 --> 00:12:26,180 So four months after shuttering his website, 248 00:12:26,204 --> 00:12:28,390 he relaunches it, with an announcement 249 00:12:28,414 --> 00:12:32,436 that sets Beanie Baby fans ablaze. 250 00:12:32,460 --> 00:12:36,398 {\an8}-Ty co-opted that idea, Ty the man, and said, 251 00:12:36,422 --> 00:12:39,234 {\an8}"We're gonna start retiring some of these." 252 00:12:39,258 --> 00:12:42,821 {\an8}That made people think, "Oh, my God, 253 00:12:42,845 --> 00:12:44,907 {\an8}they're never gonna make those again, 254 00:12:44,931 --> 00:12:49,954 {\an8}so I had better go back and buy the ones that I had missed." 255 00:12:49,978 --> 00:12:53,290 {\an8}♪♪ 256 00:12:53,314 --> 00:12:58,128 {\an8}-Ty wanted very much to have total control 257 00:12:58,152 --> 00:13:04,051 {\an8}over not only his product, but the entire market. 258 00:13:04,075 --> 00:13:09,807 -So it was just an incredibly clever strategy 259 00:13:09,831 --> 00:13:12,309 to make people believe 260 00:13:12,333 --> 00:13:16,522 that there was a scarcity to these products. 261 00:13:16,546 --> 00:13:18,983 It was... It was brilliant. 262 00:13:19,007 --> 00:13:20,693 {\an8}-I would find it very hard to believe 263 00:13:20,717 --> 00:13:23,487 {\an8}that there was any site on the Internet at that time 264 00:13:23,511 --> 00:13:27,950 that was getting more traffic than the Beanie Babies website. 265 00:13:27,974 --> 00:13:31,120 People would post messages like, "Hey, everybody, 266 00:13:31,144 --> 00:13:33,247 I have a Beanie Baby 267 00:13:33,271 --> 00:13:35,249 that I'm willing to trade for this much, 268 00:13:35,273 --> 00:13:37,501 or I'm willing to sell for this much." 269 00:13:37,525 --> 00:13:39,003 -$200. $300. 270 00:13:39,027 --> 00:13:43,048 -He's worth anywhere from $500 to probably $900. 271 00:13:43,072 --> 00:13:45,259 - Bongo retired. - I know. 272 00:13:45,283 --> 00:13:48,012 Don't touch him, though. 273 00:13:48,036 --> 00:13:49,972 -A lot of the moms during that time 274 00:13:49,996 --> 00:13:52,016 were hunting for the Beanie Babies, 275 00:13:52,040 --> 00:13:56,812 {\an8}and then after a while, it kind of got addictive for me 276 00:13:56,836 --> 00:13:59,356 to find as many as possible. - Total addiction. 277 00:13:59,380 --> 00:14:01,734 Once you fall in love with them, you're all through. 278 00:14:01,758 --> 00:14:03,736 You'll do anything to get more. 279 00:14:03,760 --> 00:14:05,988 -It was no longer a child's toy. 280 00:14:06,012 --> 00:14:08,323 It was the thrill of the hunt for me then. 281 00:14:08,347 --> 00:14:10,409 -Say "bye"! [ Laughs ] 282 00:14:10,433 --> 00:14:13,537 -America is hooked. 283 00:14:13,561 --> 00:14:15,247 By year's end, 284 00:14:15,271 --> 00:14:18,584 {\an8}Ty Warner's retirement ploy is working. 285 00:14:18,608 --> 00:14:23,088 {\an8}Now sold in stores across the country, Ty's Beanie Babies 286 00:14:23,112 --> 00:14:26,717 generate an estimated $28 million in sales, 287 00:14:26,741 --> 00:14:29,386 5 bucks at a time. 288 00:14:29,410 --> 00:14:31,847 -Well, they started lining up at 1:30 289 00:14:31,871 --> 00:14:34,558 in the afternoon yesterday for our 8:00 sale. 290 00:14:34,582 --> 00:14:36,435 -If you don't have a number, you're not gonna be let in 291 00:14:36,459 --> 00:14:39,063 till everybody else who has a number have been rotated out. 292 00:14:39,087 --> 00:14:42,232 -Every time he would retire Beanies, 293 00:14:42,256 --> 00:14:44,485 they started buying not one or two... 294 00:14:44,509 --> 00:14:46,737 They were buying hundreds of them. 295 00:14:46,761 --> 00:14:49,406 -Aah! This is crazy. 296 00:14:49,430 --> 00:14:51,033 [ Indistinct conversations ] 297 00:14:51,057 --> 00:14:54,286 -Having artificially created a full-fledged craze, 298 00:14:54,310 --> 00:14:57,039 Ty Warner is no longer just a toymaker. 299 00:14:57,063 --> 00:14:59,917 He's a bona fide puppet master... 300 00:14:59,941 --> 00:15:02,443 And an elusive one at that. 301 00:15:04,779 --> 00:15:09,968 -He did no commercials, he did no interviews, 302 00:15:09,992 --> 00:15:15,349 so people wanted to know, like, "Who is this person?" 303 00:15:15,373 --> 00:15:19,770 -When you read the harrowing stories of his youth, 304 00:15:19,794 --> 00:15:24,382 you realize and recognize that this guy had it tough. 305 00:15:26,592 --> 00:15:32,241 Ty Warner was a very unhappy kid who got in a little trouble, 306 00:15:32,265 --> 00:15:34,618 and his father sent him off to a military academy, 307 00:15:34,642 --> 00:15:36,870 where he excelled. He had a mother 308 00:15:36,894 --> 00:15:39,456 who was diagnosed as a paranoid schizophrenic. 309 00:15:39,480 --> 00:15:42,626 And he only wanted his mother's love. 310 00:15:42,650 --> 00:15:48,549 And Georgia, his mother, just refused him any time she could. 311 00:15:48,573 --> 00:15:50,801 -Ty's childhood lays the foundation 312 00:15:50,825 --> 00:15:55,389 for what he becomes... A natural-born salesman. 313 00:15:55,413 --> 00:15:57,850 His ability and flamboyant appearance 314 00:15:57,874 --> 00:16:01,019 make him a standout at his first job... 315 00:16:01,043 --> 00:16:04,940 Salesman for the Dakin toy company. 316 00:16:04,964 --> 00:16:08,944 -He would get all dressed up in this huge fur coat 317 00:16:08,968 --> 00:16:11,446 with a top hat and a cane. 318 00:16:11,470 --> 00:16:14,491 And he was driving in this white Rolls-Royce, 319 00:16:14,515 --> 00:16:17,161 and he got the attention of the storekeepers that way... 320 00:16:17,185 --> 00:16:20,080 The gift shops, the collectible stores at the time. 321 00:16:20,104 --> 00:16:23,649 -He was making more in commissions than their CEO. 322 00:16:25,610 --> 00:16:30,048 That's all you need to know about him as a salesman. 323 00:16:30,072 --> 00:16:31,633 -But when his bosses discovered 324 00:16:31,657 --> 00:16:34,887 that he was working on his own toy creations, 325 00:16:34,911 --> 00:16:39,308 first comes the pink slip, then comes Ty Inc. 326 00:16:39,332 --> 00:16:43,103 -He was a lot like Willy Wonka. 327 00:16:43,127 --> 00:16:45,981 You hardly ever saw him. 328 00:16:46,005 --> 00:16:49,359 And he was always dressed in all black 329 00:16:49,383 --> 00:16:52,404 in an era where people didn't do that. 330 00:16:52,428 --> 00:16:58,535 -I don't think he ever received the love that he needed. 331 00:16:58,559 --> 00:17:02,206 So he poured all the unconditional, 332 00:17:02,230 --> 00:17:06,585 positive regard that he had built up into his toys. 333 00:17:06,609 --> 00:17:08,420 {\an8}[ Crowd cheering ] 334 00:17:08,444 --> 00:17:11,048 {\an8}3, 2, 1. 335 00:17:11,072 --> 00:17:15,302 {\an8}[ Cheers and applause ] 336 00:17:15,326 --> 00:17:18,639 -As the '90s turn another year older, 337 00:17:18,663 --> 00:17:22,184 Beanie Babies hit a massive growth spurt. 338 00:17:22,208 --> 00:17:25,687 -Last night we found this site, which is ebay.com. 339 00:17:25,711 --> 00:17:27,546 It's an auction site. 340 00:17:29,757 --> 00:17:36,156 -eBay was created by Pierre Omidyar as a website 341 00:17:36,180 --> 00:17:37,783 called AuctionWeb. 342 00:17:37,807 --> 00:17:39,534 Before the rise of eBay, 343 00:17:39,558 --> 00:17:43,205 I used to have to go to a local dealer and say, 344 00:17:43,229 --> 00:17:44,873 "How much will you give me for this?" 345 00:17:44,897 --> 00:17:47,334 He'd say, "Well, I've only got $100 in the register. 346 00:17:47,358 --> 00:17:49,419 That's all I can offer you." 347 00:17:49,443 --> 00:17:52,422 Enter eBay. 348 00:17:52,446 --> 00:17:55,384 So where you might have an audience of three 349 00:17:55,408 --> 00:17:59,554 to 10 people in a local store for an item, 350 00:17:59,578 --> 00:18:02,599 you would have hundreds, potentially thousands, 351 00:18:02,623 --> 00:18:04,518 when you put it up on eBay. 352 00:18:04,542 --> 00:18:07,521 So that creates and perpetuates 353 00:18:07,545 --> 00:18:12,651 the secondary market value of the object. 354 00:18:12,675 --> 00:18:17,322 -It was the natural economics of supply and demand. 355 00:18:17,346 --> 00:18:20,993 The people who had the supply would put them on auction, 356 00:18:21,017 --> 00:18:23,495 and the people who really wanted them 357 00:18:23,519 --> 00:18:27,249 would bid them up to astronomic prices. 358 00:18:27,273 --> 00:18:29,334 -I would say over $5,000. 359 00:18:29,358 --> 00:18:30,627 - $5,000? - Yeah. 360 00:18:30,651 --> 00:18:32,629 -This is my livelihood, basically, 361 00:18:32,653 --> 00:18:34,089 but I am a hairdresser. 362 00:18:34,113 --> 00:18:35,674 So I do work one day a week, 363 00:18:35,698 --> 00:18:39,678 but I do sleep, eat, and breathe Beanies. 364 00:18:39,702 --> 00:18:44,057 -We were on eBay every day almost the whole day, 365 00:18:44,081 --> 00:18:48,729 looking for the Beanies, checking the prices. 366 00:18:48,753 --> 00:18:51,982 -At one point, 7% to 10% 367 00:18:52,006 --> 00:18:57,696 of all business of all listings on eBay were Beanie Babies. 368 00:18:57,720 --> 00:19:00,282 It was absolutely revolutionary. 369 00:19:00,306 --> 00:19:04,953 And collectors were essential to the rise of eBay. 370 00:19:04,977 --> 00:19:07,497 -If eBay is a boon for some collectors, 371 00:19:07,521 --> 00:19:11,043 it's a digital bonanza for Ty Warner. 372 00:19:11,067 --> 00:19:15,213 In 1996, his company's profits jump tenfold 373 00:19:15,237 --> 00:19:17,007 from just the year before. 374 00:19:17,031 --> 00:19:22,012 {\an8}Total revenue... $280 million. 375 00:19:22,036 --> 00:19:23,513 -This is the first time in 30 years 376 00:19:23,537 --> 00:19:25,223 that something this big has happened. 377 00:19:25,247 --> 00:19:28,226 I think the last thing probably was the hula hoop. 378 00:19:28,250 --> 00:19:31,646 -The Beanie Baby train is already moving fast, 379 00:19:31,670 --> 00:19:36,026 and then fast food decides to climb on board. 380 00:19:36,050 --> 00:19:38,612 - First I got Pinky. - Then I got Pinky. 381 00:19:38,636 --> 00:19:40,781 -I got Pinky and Patti in the same week. 382 00:19:40,805 --> 00:19:44,034 - What, Vanessa catch something? - Teenie-weenie Baby-itis. 383 00:19:44,058 --> 00:19:46,953 {\an8}-Now at McDonald's, your kids can get Teenie Beanie Babies 384 00:19:46,977 --> 00:19:48,372 {\an8}in a Happy Meal. 385 00:19:48,396 --> 00:19:52,709 -Something in Ty Warner's head recognized 386 00:19:52,733 --> 00:19:59,549 the potential of offering a tiny or a smaller Beanie Baby 387 00:19:59,573 --> 00:20:05,972 in a Happy Meal as a way to promote his product globally. 388 00:20:05,996 --> 00:20:09,101 -The campaign is an instant hit. 389 00:20:09,125 --> 00:20:12,938 -I got a zebra. I got a pig. 390 00:20:12,962 --> 00:20:15,107 -So much so that McDonald's 391 00:20:15,131 --> 00:20:17,234 keeps it rolling the following year. 392 00:20:17,258 --> 00:20:20,028 -They're cute. And they're worth a lot of money. 393 00:20:20,052 --> 00:20:23,740 -But it will soon spin out into a free-for-all 394 00:20:23,764 --> 00:20:26,493 that will derail the fun... 395 00:20:26,517 --> 00:20:28,787 -Oh, my God! Look at this. 396 00:20:28,811 --> 00:20:31,206 - and bloody the Beanie craze. 397 00:20:31,230 --> 00:20:36,527 -What started out to be so fun now was getting so ugly. 398 00:20:37,528 --> 00:20:39,029 -They're rolling on this, right? 399 00:20:43,576 --> 00:20:45,137 - What do they give away here? - They have Beanie Babies. 400 00:20:45,161 --> 00:20:46,721 -When McDonald's kicks off its second Teenie Beanie 401 00:20:46,745 --> 00:20:49,933 giveaway in the summer of 1998, 402 00:20:49,957 --> 00:20:53,603 there's a whiff of tension in the air. 403 00:20:53,627 --> 00:20:56,231 -I had to eat a Happy Meal today so I could get one 404 00:20:56,255 --> 00:20:57,774 for my other kids, 405 00:20:57,798 --> 00:20:59,901 and then they can fight over it when we get home. 406 00:20:59,925 --> 00:21:02,112 -Fueled by bidders on eBay, 407 00:21:02,136 --> 00:21:04,614 a full set of the give-away plushies 408 00:21:04,638 --> 00:21:08,368 are now worth 75 bucks on the secondary market. 409 00:21:08,392 --> 00:21:09,995 And that's leading to 410 00:21:10,019 --> 00:21:13,665 some very un-Happy-Meal family experiences. 411 00:21:13,689 --> 00:21:15,292 -What we did is, we gave 412 00:21:15,316 --> 00:21:18,712 {\an8}each of our older children a $20 bill 413 00:21:18,736 --> 00:21:21,256 {\an8}to wait in line to get a Happy Meal. 414 00:21:21,280 --> 00:21:26,011 So we had four children and ourselves in line 415 00:21:26,035 --> 00:21:29,139 to get as many Happy Meals as we could. 416 00:21:29,163 --> 00:21:32,267 And we would go there to the next McDonald's. 417 00:21:32,291 --> 00:21:34,102 -I just met a man in line, and we're gonna trade 418 00:21:34,126 --> 00:21:35,979 because I needed a moose, and so I'm gonna trade my fish 419 00:21:36,003 --> 00:21:38,940 for a moose that I got yesterday. 420 00:21:38,964 --> 00:21:42,152 -The bags that you purchased had pictures of Beanie Babies 421 00:21:42,176 --> 00:21:43,945 all over them, so people were like, 422 00:21:43,969 --> 00:21:45,530 "Give me the bag, give me the box, 423 00:21:45,554 --> 00:21:47,932 give me the Beanie, and keep the food." 424 00:21:49,308 --> 00:21:52,204 {\an8}-When word spreads that some McDonald's around the country 425 00:21:52,228 --> 00:21:57,417 {\an8}are running out, the mania spirals into mayhem. 426 00:21:57,441 --> 00:22:00,128 -The woman in front of me, they had turned over a card 427 00:22:00,152 --> 00:22:03,465 that they were out of something, and she went nuts. 428 00:22:03,489 --> 00:22:05,050 -It was no longer a restaurant. 429 00:22:05,074 --> 00:22:09,471 It was basically a line to get a Teenie Beanie. 430 00:22:09,495 --> 00:22:11,932 {\an8}-It was disrupting business. 431 00:22:11,956 --> 00:22:16,061 -I've heard that people kind of take them out of your hand. 432 00:22:16,085 --> 00:22:20,690 -Adults standing in line and punching each other 433 00:22:20,714 --> 00:22:24,486 to get Happy Meals. That happened. 434 00:22:24,510 --> 00:22:26,488 -The worst I've seen as far as for a stuffed animal 435 00:22:26,512 --> 00:22:28,698 or a toy for, you know, a child. 436 00:22:28,722 --> 00:22:32,869 -That McDonald's promotion of Teenie Beanies 437 00:22:32,893 --> 00:22:36,498 is what really became the zenith. 438 00:22:36,522 --> 00:22:39,960 The homicidal, bloodthirsty lines 439 00:22:39,984 --> 00:22:44,297 for Beanie Babies... That was the... the apex. 440 00:22:44,321 --> 00:22:48,802 -It was a Beanie Baby backup on Interstate 285 West. 441 00:22:48,826 --> 00:22:52,013 After a load of McDonald's-bound Teenie Beanie bears 442 00:22:52,037 --> 00:22:54,015 spilled out into the middle of the interstate, 443 00:22:54,039 --> 00:22:56,476 most drivers simply slowed down, 444 00:22:56,500 --> 00:22:59,646 but others saw gold, and they went for it. 445 00:22:59,670 --> 00:23:01,690 -There it is! There it is! [ Laughs ] 446 00:23:01,714 --> 00:23:03,858 Oh, my God! Look at this. 447 00:23:03,882 --> 00:23:06,528 Are they... They're rolling on this, right? 448 00:23:06,552 --> 00:23:09,030 -It became a very different market. 449 00:23:09,054 --> 00:23:12,909 {\an8}It was no longer the moms and their kids. 450 00:23:12,933 --> 00:23:16,830 {\an8}It became people's full-time jobs 451 00:23:16,854 --> 00:23:19,666 because they thought it was easy money. 452 00:23:19,690 --> 00:23:21,293 So when that happens, 453 00:23:21,317 --> 00:23:25,130 you start to attract a whole different type of person. 454 00:23:25,154 --> 00:23:27,549 {\an8}For a long time, my job was handling the articles, 455 00:23:27,573 --> 00:23:30,594 {\an8}and I would see these newspaper articles of people 456 00:23:30,618 --> 00:23:32,887 running after UPS trucks. 457 00:23:32,911 --> 00:23:35,849 -It's just one of those little fads, like Elmo. 458 00:23:35,873 --> 00:23:37,350 "Come here. Elmo." 459 00:23:37,374 --> 00:23:39,102 They want Beanie Babies. 460 00:23:39,126 --> 00:23:44,691 -Ty Warner had to take the Ty heart off of shipping boxes 461 00:23:44,715 --> 00:23:47,861 because they would assault UPS drivers. 462 00:23:47,885 --> 00:23:49,696 -I'll... I'll come out of a back of a store, 463 00:23:49,720 --> 00:23:51,573 and there'll be five people waiting on me. 464 00:23:51,597 --> 00:23:53,700 -There was a lot of theft. 465 00:23:53,724 --> 00:23:55,452 -A security guard making the rounds 466 00:23:55,476 --> 00:24:00,415 was surprised by two men, who jumped him from behind. 467 00:24:00,439 --> 00:24:06,046 -Many organized crime rings recognized the value of Beanies, 468 00:24:06,070 --> 00:24:10,216 and instead of drugs, instead of prostitution, 469 00:24:10,240 --> 00:24:12,052 instead of guns, 470 00:24:12,076 --> 00:24:17,641 they would actually break into shops to steal Beanie Babies. 471 00:24:17,665 --> 00:24:19,267 [ Glass shattering ] 472 00:24:19,291 --> 00:24:22,354 -I think I'm through because it's getting out of hand. 473 00:24:22,378 --> 00:24:23,921 I am concerned. 474 00:24:25,297 --> 00:24:26,566 {\an8}It is. 475 00:24:26,590 --> 00:24:29,819 -And when counterfeiting started, really?! 476 00:24:29,843 --> 00:24:33,365 -Very popular and easy to sell. No serial numbers, no markings, 477 00:24:33,389 --> 00:24:36,975 no nothing. No way to trace any of the stolen goods. 478 00:24:40,354 --> 00:24:41,748 -You started to get 479 00:24:41,772 --> 00:24:45,085 the counterfeit Beanies from Beijing. 480 00:24:45,109 --> 00:24:50,382 And they were coming into the country through eBay. 481 00:24:50,406 --> 00:24:55,178 We had collectors who had spent $10,000 on Beanies, 482 00:24:55,202 --> 00:24:58,640 and every one of them were fake. 483 00:24:58,664 --> 00:25:01,976 -What we found was, 456 pieces were seized 484 00:25:02,000 --> 00:25:06,272 for infringement on the popular Beanie Baby copyright. 485 00:25:06,296 --> 00:25:07,607 [ Siren wailing, police radio chatter ] 486 00:25:07,631 --> 00:25:12,404 -When it became an arena of greedy, 487 00:25:12,428 --> 00:25:17,450 slimy people trying to slide into the joy 488 00:25:17,474 --> 00:25:22,122 of this collecting market, I lost my joy. 489 00:25:22,146 --> 00:25:24,499 -Although the counterfeit market 490 00:25:24,523 --> 00:25:27,460 is cutting into Ty Warner's bottom line, 491 00:25:27,484 --> 00:25:30,046 1998 is still a banner year. 492 00:25:30,070 --> 00:25:34,050 His company's profits hit $1 billion, 493 00:25:34,074 --> 00:25:37,846 {\an8}and he personally takes home more than $700 million. 494 00:25:37,870 --> 00:25:41,850 {\an8}But the more he makes, the less we see him. 495 00:25:41,874 --> 00:25:45,311 {\an8}-The newspapers would call and want a quote from the company 496 00:25:45,335 --> 00:25:48,022 as they were writing an article about Beanie Babies 497 00:25:48,046 --> 00:25:51,192 in their newspaper about the craze, about this new product. 498 00:25:51,216 --> 00:25:56,322 -The more they tried, the more he pulled back. 499 00:25:56,346 --> 00:25:59,617 -You think of him as a strange Willy Wonka type. 500 00:25:59,641 --> 00:26:02,579 You think of him as a man in an ivory tower 501 00:26:02,603 --> 00:26:06,750 making decisions and laboring over the toys. 502 00:26:06,774 --> 00:26:11,546 And that's not far from the truth. 503 00:26:11,570 --> 00:26:14,174 He's a man literally in a tower. 504 00:26:14,198 --> 00:26:15,717 He bought the Four Seasons Hotel 505 00:26:15,741 --> 00:26:19,304 and renovated its penthouse suite. 506 00:26:19,328 --> 00:26:22,223 -If Warner's home is a tower, his headquarters 507 00:26:22,247 --> 00:26:26,144 in Westmont, Illinois, is a fortress, and employees 508 00:26:26,168 --> 00:26:31,232 are seemingly under strict gag orders from above. 509 00:26:31,256 --> 00:26:34,694 -They had the Westmont police patrolling that building 510 00:26:34,718 --> 00:26:36,446 at all times. 511 00:26:36,470 --> 00:26:39,824 You could go inside and talk to the front desk, 512 00:26:39,848 --> 00:26:41,785 but you would get no information. 513 00:26:41,809 --> 00:26:44,102 You weren't able to talk to anybody. 514 00:26:48,148 --> 00:26:49,209 {\an8}-Okay. 515 00:26:49,233 --> 00:26:57,233 {\an8}♪♪ 516 00:26:58,700 --> 00:27:01,262 -We all knew that there was gonna be coming 517 00:27:01,286 --> 00:27:04,891 a Beanie Baby called the Billionaire Beanie Baby. 518 00:27:04,915 --> 00:27:09,437 Ty Warner was gonna be giving those to his employees. 519 00:27:09,461 --> 00:27:13,441 So I load my baby at 6 months old in the car seat, 520 00:27:13,465 --> 00:27:19,155 and the two of us go on over to Ty's parking lot. 521 00:27:19,179 --> 00:27:23,117 The publisher sends me $5,000 in cash 522 00:27:23,141 --> 00:27:27,497 and told me to offer that to employees. 523 00:27:27,521 --> 00:27:31,417 And I start offering them to people. 524 00:27:31,441 --> 00:27:34,504 I tried maybe 10 different employees coming out, 525 00:27:34,528 --> 00:27:38,091 and they all turned me down, and with fear in their eyes. 526 00:27:38,115 --> 00:27:40,802 [ Baby crying ] 527 00:27:40,826 --> 00:27:44,514 So I stopped that, and I just sat in the parking lot. 528 00:27:44,538 --> 00:27:47,851 I took my baby out of the car seat to feed him. 529 00:27:47,875 --> 00:27:51,271 And as I'm feeding this baby, the Westmont police 530 00:27:51,295 --> 00:27:53,398 comes over with his hands on his guns 531 00:27:53,422 --> 00:27:57,986 and says, "You need to get out of this parking lot right now! 532 00:27:58,010 --> 00:28:00,446 This is private property." I'm like, "Well, 533 00:28:00,470 --> 00:28:03,116 can I just finish feeding my baby?" 534 00:28:03,140 --> 00:28:04,826 "Right now!" 535 00:28:04,850 --> 00:28:08,830 And here I'm just a suburban mom with a little baby. 536 00:28:08,854 --> 00:28:10,772 [ Baby crying ] 537 00:28:13,275 --> 00:28:15,837 -Like every company, the maker of Beanie Babies 538 00:28:15,861 --> 00:28:20,091 has trade secrets and business strategies to protect. 539 00:28:20,115 --> 00:28:22,719 And as Ty Warner approaches the fourth year 540 00:28:22,743 --> 00:28:24,846 of his Beanie Baby boom, 541 00:28:24,870 --> 00:28:30,184 he's about to reveal a scheme that will crush collectors 542 00:28:30,208 --> 00:28:31,877 and topple the market. 543 00:28:36,840 --> 00:28:38,026 -Near the end of President Clinton's 544 00:28:38,050 --> 00:28:39,360 second term... - A Beanie Baby. 545 00:28:39,384 --> 00:28:41,321 I love that. [ Laughs ] I love that. 546 00:28:41,345 --> 00:28:43,698 - and on the eve of a new millennium, 547 00:28:43,722 --> 00:28:46,159 much of America is living like the bubble 548 00:28:46,183 --> 00:28:48,578 can only keep expanding. 549 00:28:48,602 --> 00:28:50,496 -Bought it for $10,000. 150,000 3/8. 550 00:28:50,520 --> 00:28:52,665 -$5,000. $5,000. 551 00:28:52,689 --> 00:28:56,544 -From the titans of Wall Street to New York City cabbies, 552 00:28:56,568 --> 00:28:58,963 folks across the economic spectrum 553 00:28:58,987 --> 00:29:01,716 are partying like it's 1999... 554 00:29:01,740 --> 00:29:03,176 -Dot-com! Whoo! 555 00:29:03,200 --> 00:29:04,761 - thanks to massive windfalls 556 00:29:04,785 --> 00:29:07,138 from their dot-com stock trading. 557 00:29:07,162 --> 00:29:09,182 And while the good times continue to roll 558 00:29:09,206 --> 00:29:11,059 on the stock exchanges, 559 00:29:11,083 --> 00:29:13,895 so it goes in the Beanie exchange, as well. 560 00:29:13,919 --> 00:29:15,396 -Do you have any retired ones? 561 00:29:15,420 --> 00:29:19,943 {\an8}They have sold for $8,800 in different places. 562 00:29:19,967 --> 00:29:22,737 -There were a lot of collectors that quit their jobs, 563 00:29:22,761 --> 00:29:25,698 {\an8}and they were at the trade shows. So we would meet them. 564 00:29:25,722 --> 00:29:28,534 {\an8}And there were some of the... The girls that were collecting, 565 00:29:28,558 --> 00:29:31,412 they had the most beautiful jewelry I've ever seen. 566 00:29:31,436 --> 00:29:34,040 They had diamond necklaces, diamond earrings. 567 00:29:34,064 --> 00:29:36,042 And she was making, she said, every month 568 00:29:36,066 --> 00:29:40,338 about $30,000 just in her Beanie profits. 569 00:29:40,362 --> 00:29:42,423 -He is the king of all Beanies. 570 00:29:42,447 --> 00:29:43,883 The prize. Number one. 571 00:29:43,907 --> 00:29:47,428 - So how much is he? - He's $5,200. 572 00:29:47,452 --> 00:29:50,765 -Well, you've got to remember that television programs, 573 00:29:50,789 --> 00:29:53,267 newspapers and magazines, 574 00:29:53,291 --> 00:29:56,187 and Beanie Baby-centric magazines 575 00:29:56,211 --> 00:30:01,067 {\an8}that sprung up all perpetuated this value myth. 576 00:30:01,091 --> 00:30:02,860 -Isn't that cute? What would you rather have... 577 00:30:02,884 --> 00:30:05,405 A... a new car or Peanut the Elephant? 578 00:30:05,429 --> 00:30:08,408 -There was also a book that came out 579 00:30:08,432 --> 00:30:11,452 that was predicting the prices of the Beanies 580 00:30:11,476 --> 00:30:13,454 and how they would go up, 581 00:30:13,478 --> 00:30:16,290 and he was predicting very high prices. 582 00:30:16,314 --> 00:30:19,961 And so people were reading this as if it was the truth. 583 00:30:19,985 --> 00:30:22,964 -All items can be found in Mary Beth's Beanie World. 584 00:30:22,988 --> 00:30:24,632 -It's an international magazine. 585 00:30:24,656 --> 00:30:26,467 We're now printing over 1 million copies per month. 586 00:30:26,491 --> 00:30:30,430 Like, in this magazine, there are pictures of every single 587 00:30:30,454 --> 00:30:33,474 Beanie Baby every month and their values. 588 00:30:33,498 --> 00:30:37,729 {\an8}-There was a layer of people that were looking at this 589 00:30:37,753 --> 00:30:39,856 {\an8}as an investment, like, you know, 590 00:30:39,880 --> 00:30:41,691 "Oh, I have stock in Walmart, 591 00:30:41,715 --> 00:30:44,485 and I also have these Beanie Babies." 592 00:30:44,509 --> 00:30:47,155 -There were a lot of people that watched their friends 593 00:30:47,179 --> 00:30:51,117 get incredibly wealthy off Internet stocks 594 00:30:51,141 --> 00:30:54,454 and really wanted to... to get in on it. 595 00:30:54,478 --> 00:30:56,330 But they didn't have enough money to invest, 596 00:30:56,354 --> 00:30:58,666 so they... they went to Beanie Babies. 597 00:30:58,690 --> 00:31:02,587 This is all fueled by the fact that 598 00:31:02,611 --> 00:31:08,384 the initial investment cost was $5. 599 00:31:08,408 --> 00:31:10,720 -It's a $5 bill 600 00:31:10,744 --> 00:31:14,265 with the potential for thousands of dollars in revenue, 601 00:31:14,289 --> 00:31:16,601 and that's in everyone's mind. 602 00:31:16,625 --> 00:31:20,855 {\an8}-At one point, I was offered $100,000 603 00:31:20,879 --> 00:31:23,524 {\an8}for my entire collection. 604 00:31:23,548 --> 00:31:27,862 And guess what. I couldn't sell. 605 00:31:27,886 --> 00:31:31,365 It became like a part of me, like an appendage, 606 00:31:31,389 --> 00:31:34,869 an arm or a leg, this collection. 607 00:31:34,893 --> 00:31:40,416 -Many people have a sentimentality for what they own 608 00:31:40,440 --> 00:31:44,545 and a belief in that if it's a collectible, 609 00:31:44,569 --> 00:31:47,215 we'll always appreciate. 610 00:31:47,239 --> 00:31:52,220 People wanted to keep these for a long time 611 00:31:52,244 --> 00:31:54,722 because they truly believed in their hearts 612 00:31:54,746 --> 00:31:59,268 that this was gonna put their kids through college. 613 00:31:59,292 --> 00:32:05,399 And I think that forced many collectors to hold on 614 00:32:05,423 --> 00:32:08,402 to their collections well past the due date. 615 00:32:08,426 --> 00:32:10,321 -Almond. I don't have Almond, right? 616 00:32:10,345 --> 00:32:12,365 -While prices in the secondary market 617 00:32:12,389 --> 00:32:15,326 are still in the stratosphere, 618 00:32:15,350 --> 00:32:18,913 wholesale orders are beginning to dip. 619 00:32:18,937 --> 00:32:22,083 Having successfully sparked the now four-year-old craze 620 00:32:22,107 --> 00:32:23,876 with his retirement scheme, 621 00:32:23,900 --> 00:32:27,588 Ty Warner comes up with a new plan to juice demand 622 00:32:27,612 --> 00:32:31,158 and prove that he can make lightning strike twice. 623 00:32:34,077 --> 00:32:38,683 {\an8}-Ty Warner put out a large message to the media. 624 00:32:38,707 --> 00:32:40,768 December 31, 1999, 625 00:32:40,792 --> 00:32:44,147 the entire line of Beanie Babies will be retired. 626 00:32:44,171 --> 00:32:46,298 That is big, big news. 627 00:32:48,049 --> 00:32:51,612 {\an8}-So, again, you had all these questions on the chat rooms 628 00:32:51,636 --> 00:32:55,491 and people calling each other and saying, "What is he doing?" 629 00:32:55,515 --> 00:33:02,790 {\an8}♪♪ 630 00:33:02,814 --> 00:33:06,335 -They would put out messages on the website 631 00:33:06,359 --> 00:33:07,837 that the end is coming. 632 00:33:07,861 --> 00:33:09,630 -Well, I think it's really bad. 633 00:33:09,654 --> 00:33:13,092 -Kind of sad 'cause I really like Beanie Babies. 634 00:33:13,116 --> 00:33:17,972 -Ty wanted very much to have total control. 635 00:33:17,996 --> 00:33:22,626 And he felt like the great Oz behind the curtain. 636 00:33:24,628 --> 00:33:26,689 -Ty Warner expects his latest scheme 637 00:33:26,713 --> 00:33:28,983 will lead to another payday, 638 00:33:29,007 --> 00:33:31,569 but when a Beanie-related murder occurs 639 00:33:31,593 --> 00:33:33,821 in small-town West Virginia, 640 00:33:33,845 --> 00:33:39,076 it's the wake-up call that Beanie fever is about to break. 641 00:33:39,100 --> 00:33:41,621 -I somewhat hope that the craze will start to die off 642 00:33:41,645 --> 00:33:44,665 so our sanity can return to us again. 643 00:33:44,689 --> 00:33:45,958 -Beanie Babies are dead. 644 00:33:45,982 --> 00:33:48,669 It's over at December 31st. 645 00:33:48,693 --> 00:33:51,797 The millennium, no more Beanie Babies. 646 00:33:51,821 --> 00:33:54,717 -With months to go until the end of the decade, 647 00:33:54,741 --> 00:33:58,012 {\an8}word of Ty Warner's declaration that all Beanie Babies 648 00:33:58,036 --> 00:34:01,349 {\an8}will be retired on December 31st 649 00:34:01,373 --> 00:34:04,852 creates fear and uncertainty in the collecting community. 650 00:34:04,876 --> 00:34:06,646 -They will stop making them by the end of the year, 651 00:34:06,670 --> 00:34:09,690 so I better go and get some. - We might pick up a few more. 652 00:34:09,714 --> 00:34:11,359 - Mm. - Yeah, yeah. 653 00:34:11,383 --> 00:34:15,196 -In the beginning, the collecting market started to go, 654 00:34:15,220 --> 00:34:17,740 "Oh, no. Oh, no. Oh, no, no, no. 655 00:34:17,764 --> 00:34:20,368 Oh, we got to collect all the ones that we don't have yet." 656 00:34:20,392 --> 00:34:24,062 So it created more desire. 657 00:34:26,398 --> 00:34:28,084 -In Elkins, West Virginia, 658 00:34:28,108 --> 00:34:30,586 two night watchmen at a local lumber yard, 659 00:34:30,610 --> 00:34:32,463 Jeffrey White and Harry Simmons, 660 00:34:32,487 --> 00:34:36,634 are hoping to cash in on the rush. 661 00:34:36,658 --> 00:34:41,138 The two purportedly have a plan to start a trading business. 662 00:34:41,162 --> 00:34:45,393 Simmons loans White 150 bucks and several hundred dollars' 663 00:34:45,417 --> 00:34:48,020 worth of Beanies to sell. 664 00:34:48,044 --> 00:34:52,775 But the deal goes sideways when White doesn't pay Simmons. 665 00:34:52,799 --> 00:34:54,318 The two argue. 666 00:34:54,342 --> 00:34:56,445 White storms off. 667 00:34:56,469 --> 00:34:59,782 And then returns with a gun. 668 00:34:59,806 --> 00:35:02,576 [ Gunshot ] 669 00:35:02,600 --> 00:35:05,329 When the smoke clears, Simmons is dead. 670 00:35:05,353 --> 00:35:06,789 {\an8}[ Siren wailing ] 671 00:35:06,813 --> 00:35:09,667 {\an8}And Jeff White is sent to prison. 672 00:35:09,691 --> 00:35:15,381 {\an8}♪♪ 673 00:35:15,405 --> 00:35:21,137 {\an8}♪♪ 674 00:35:21,161 --> 00:35:25,308 The final Beanie to be produced is named The End. 675 00:35:25,332 --> 00:35:27,184 Stamped on the heart-shaped tag 676 00:35:27,208 --> 00:35:30,062 attached to the little black bear is this poem... 677 00:35:30,086 --> 00:35:34,275 "All good things come to an end. It's been fun for everyone. 678 00:35:34,299 --> 00:35:36,902 Peace and hope are never gone. 679 00:35:36,926 --> 00:35:40,138 Love you all, and say 'so long.'" 680 00:35:41,973 --> 00:35:44,785 But as collectors soon discover, 681 00:35:44,809 --> 00:35:48,289 the heartfelt message rings hollow. 682 00:35:48,313 --> 00:35:53,669 -I believe it was always Ty's intention to keep 683 00:35:53,693 --> 00:35:57,965 the Beanie Baby market going. 684 00:35:57,989 --> 00:36:01,635 He thought in his mind, "If all this retirement had worked 685 00:36:01,659 --> 00:36:04,972 so well all these years, can you imagine 686 00:36:04,996 --> 00:36:08,184 if I retire them all and then I bring them out again? 687 00:36:08,208 --> 00:36:10,436 People are gonna go crazy." 688 00:36:10,460 --> 00:36:12,563 Well, the opposite happened. 689 00:36:12,587 --> 00:36:14,440 -A few months later, 690 00:36:14,464 --> 00:36:18,819 Ty restarts production with a Beanie Baby named The Beginning. 691 00:36:18,843 --> 00:36:21,739 -People took that opportunity to quit. 692 00:36:21,763 --> 00:36:23,991 They felt played. 693 00:36:24,015 --> 00:36:26,327 [ Mouse clicks ] 694 00:36:26,351 --> 00:36:32,833 That crashed the market just like a stock market crash. 695 00:36:32,857 --> 00:36:36,962 -At one of the shows in Chicago, there was a collectible person 696 00:36:36,986 --> 00:36:40,841 who was from Carlsbad, California, a huge collector, 697 00:36:40,865 --> 00:36:45,846 and he came in with his Beanies, and he put them down, 698 00:36:45,870 --> 00:36:49,642 threw the Beanies down on the floor, and said, "I'm done." 699 00:36:49,666 --> 00:36:53,187 -The prices crashed. 700 00:36:53,211 --> 00:36:59,151 Ty Warner made an enormous error for himself 701 00:36:59,175 --> 00:37:04,323 and for all the collectors of Beanie Babies. 702 00:37:04,347 --> 00:37:07,076 It was over. It was over. 703 00:37:07,100 --> 00:37:13,666 {\an8}♪♪ 704 00:37:13,690 --> 00:37:17,878 People were very, very disappointed. 705 00:37:17,902 --> 00:37:20,714 They spent so much money, 706 00:37:20,738 --> 00:37:23,801 and it wasn't at all what they had hoped. 707 00:37:23,825 --> 00:37:28,514 Now, all of a sudden, you have a toy box full 708 00:37:28,538 --> 00:37:33,352 with perfect tags of Beanie Babies that 709 00:37:33,376 --> 00:37:38,023 can do no more than be played with at this point. 710 00:37:38,047 --> 00:37:39,400 [ Children laughing ] 711 00:37:39,424 --> 00:37:41,694 -The most famous or infamous story... 712 00:37:41,718 --> 00:37:45,072 There was a soap-opera actor who invested 713 00:37:45,096 --> 00:37:48,951 $100,000 worth of Beanie Babies 714 00:37:48,975 --> 00:37:52,163 for his children's college education, 715 00:37:52,187 --> 00:37:57,710 and then it... it just all falls apart. 716 00:37:57,734 --> 00:38:01,422 -I was selling off a lot of our collection 717 00:38:01,446 --> 00:38:03,883 by the end of 1999. 718 00:38:03,907 --> 00:38:07,428 That connection I had with my children was kind of waning, 719 00:38:07,452 --> 00:38:09,972 and they were going on to other things. 720 00:38:09,996 --> 00:38:12,475 And so that was one of the reasons. 721 00:38:12,499 --> 00:38:14,101 The other reasons really were there 722 00:38:14,125 --> 00:38:16,604 were so many counterfeits on the market. 723 00:38:16,628 --> 00:38:18,105 -They sell for 5 or 6 bucks apiece, 724 00:38:18,129 --> 00:38:20,274 and they used to be tough to get, but not anymore. 725 00:38:20,298 --> 00:38:22,651 The fad is fading. 726 00:38:22,675 --> 00:38:25,446 -When talking about the Beanie Baby bubble, 727 00:38:25,470 --> 00:38:32,953 values are based on speculation about future value. 728 00:38:32,977 --> 00:38:36,081 It's not like oil futures 729 00:38:36,105 --> 00:38:39,251 because you're not talking about a product 730 00:38:39,275 --> 00:38:42,171 that has existed for hundreds of years. 731 00:38:42,195 --> 00:38:46,300 So there are no patterns to look back on. 732 00:38:46,324 --> 00:38:51,555 Eventually, that bubble burst. 733 00:38:51,579 --> 00:38:55,309 {\an1}-While the Beanie Baby faithful deal with the financial fallout, 734 00:38:55,333 --> 00:38:58,270 Ty Warner is flush with cash. 735 00:38:58,294 --> 00:39:00,314 He's made his billions, and his company 736 00:39:00,338 --> 00:39:04,151 is now one of the wealthiest toy sellers in history. 737 00:39:04,175 --> 00:39:08,489 But Warner's got a secret that will soon come back 738 00:39:08,513 --> 00:39:09,907 to haunt him. 739 00:39:09,931 --> 00:39:12,201 -No one is above the law, and everyone, 740 00:39:12,225 --> 00:39:14,727 including the wealthy, has to pay their dues. 741 00:39:19,691 --> 00:39:21,252 -Once in love with e-commerce, 742 00:39:21,276 --> 00:39:25,005 Wall Street has turned its back on the dot-coms. 743 00:39:25,029 --> 00:39:27,132 With the crash of the Nasdaq, the gravy train 744 00:39:27,156 --> 00:39:32,179 came to a screeching halt for their dot-com industry. 745 00:39:32,203 --> 00:39:35,808 -After the dot-com bubble pops in early 2000, 746 00:39:35,832 --> 00:39:38,602 most used Beanie Babies are worth only pennies 747 00:39:38,626 --> 00:39:41,855 of their original $5 sales price. 748 00:39:41,879 --> 00:39:45,883 Beanie collections now collect nothing but dust. 749 00:39:47,552 --> 00:39:51,532 And in 2004, when the Beanie Baby billionaire claims 750 00:39:51,556 --> 00:39:54,201 losses of more than $39 million, 751 00:39:54,225 --> 00:39:59,164 the IRS believes the toymaker is now playing financial games. 752 00:39:59,188 --> 00:40:03,586 -It is imperative that when an individual brazenly breaks 753 00:40:03,610 --> 00:40:06,338 the law and lies repeatedly year 754 00:40:06,362 --> 00:40:09,049 over year on their income tax returns, 755 00:40:09,073 --> 00:40:11,510 that that person be held accountable. 756 00:40:11,534 --> 00:40:14,203 And that's true if you're rich or you're poor. 757 00:40:16,831 --> 00:40:20,227 -More than a decade after the end of the Beanie Baby boom, 758 00:40:20,251 --> 00:40:23,105 Ty Warner, now ranked 209 759 00:40:23,129 --> 00:40:26,734 in the elite Forbes 400 richest people in America, 760 00:40:26,758 --> 00:40:29,445 is arrested for tax evasion. 761 00:40:29,469 --> 00:40:32,448 -Ty had an account. 762 00:40:32,472 --> 00:40:35,409 And in this offshore account, 763 00:40:35,433 --> 00:40:38,621 Ty nestled about $100 million 764 00:40:38,645 --> 00:40:42,875 and didn't tell anybody about it. 765 00:40:42,899 --> 00:40:45,878 -We know that there were a lot of people 766 00:40:45,902 --> 00:40:47,838 who were not happy with Ty 767 00:40:47,862 --> 00:40:50,924 that were kind of happy that he got caught. 768 00:40:50,948 --> 00:40:52,384 When you burn bridges, 769 00:40:52,408 --> 00:40:56,096 those people will go against you very quickly. 770 00:40:56,120 --> 00:41:00,601 -Ty Warner was sentenced today. He got a two-year probation. 771 00:41:00,625 --> 00:41:01,935 He also has to serve 772 00:41:01,959 --> 00:41:05,380 500 hours of community service. 773 00:41:07,757 --> 00:41:10,319 -Based on federal sentencing guidelines, 774 00:41:10,343 --> 00:41:14,114 Warner could have faced up to 57 months in jail, 775 00:41:14,138 --> 00:41:16,950 but the judge cuts him a break, in part 776 00:41:16,974 --> 00:41:19,953 because of the tens of millions of dollars in charitable 777 00:41:19,977 --> 00:41:23,457 contributions Warner has made through the years. 778 00:41:23,481 --> 00:41:26,669 -He's a very complicated man. 779 00:41:26,693 --> 00:41:29,797 He's a marketing genius. 780 00:41:29,821 --> 00:41:31,924 He's incredibly wealthy. 781 00:41:31,948 --> 00:41:34,551 But I think the best way to describe 782 00:41:34,575 --> 00:41:38,514 Ty Warner is, I heard a story. His executives were asked, 783 00:41:38,538 --> 00:41:42,184 "Would you trade places with Ty Warner?" 784 00:41:42,208 --> 00:41:46,254 And every single one of them said, "Absolutely not." 785 00:41:48,965 --> 00:41:52,343 Because of his profound sadness. 786 00:41:54,804 --> 00:41:58,409 There's just a void that just can't get filled, 787 00:41:58,433 --> 00:42:01,245 I guess. 788 00:42:01,269 --> 00:42:04,665 -Being able to say that I did something 789 00:42:04,689 --> 00:42:06,333 that was never done before 790 00:42:06,357 --> 00:42:11,338 and I did it in association with a product as fun 791 00:42:11,362 --> 00:42:15,050 and playful as Beanie Babies is something 792 00:42:15,074 --> 00:42:19,054 that I will always hold dear to me. 793 00:42:19,078 --> 00:42:21,682 In some kind of way, 794 00:42:21,706 --> 00:42:23,726 the work that I did made an impact 795 00:42:23,750 --> 00:42:25,752 to people. In some kind of way. 796 00:42:29,505 --> 00:42:33,026 -When people ask me about collecting, I say, 797 00:42:33,050 --> 00:42:36,196 "Don't collect things. Collect memories." 798 00:42:36,220 --> 00:42:39,241 My little grandchildren, 1 1/2 and 3 1/2, 799 00:42:39,265 --> 00:42:41,910 play with a lot of the Beanie Babies. 800 00:42:41,934 --> 00:42:43,996 None of the original nine, might I say. 801 00:42:44,020 --> 00:42:48,333 I still keep those tagged in a cabinet. 802 00:42:48,357 --> 00:42:52,880 -A lot of parents now are holding those Beanie Babies, 803 00:42:52,904 --> 00:42:54,673 giving them to their Millennials, 804 00:42:54,697 --> 00:42:56,633 who now are having children. 805 00:42:56,657 --> 00:42:59,553 And I think we're gonna have another generation 806 00:42:59,577 --> 00:43:04,391 who will fall in love with these original Beanie Babies. 807 00:43:04,415 --> 00:43:09,354 -I won't ever say that we'll never see anything 808 00:43:09,378 --> 00:43:13,609 like Beanie Babies again in terms of the mania, 809 00:43:13,633 --> 00:43:18,906 because, yes, there was a confluence of things 810 00:43:18,930 --> 00:43:22,910 happening at just the perfect time 811 00:43:22,934 --> 00:43:26,830 to drive the American people into a frenzy. 812 00:43:26,854 --> 00:43:28,248 [ Children cheering ] 813 00:43:28,272 --> 00:43:30,125 Hasn't happened yet, 814 00:43:30,149 --> 00:43:33,378 but that doesn't mean that it couldn't happen. 815 00:43:33,402 --> 00:43:40,594 {\an8}♪♪ 816 00:43:40,618 --> 00:43:43,430 -I talked to Ty, and I told him, "You know, I think it would be 817 00:43:43,454 --> 00:43:45,599 {\an8}really cool to do something different in the tags." 818 00:43:45,623 --> 00:43:48,811 {\an8}And he said, "Sounds good. Can you show me an example?" 819 00:43:48,835 --> 00:43:51,814 {\an8}This is the first Beanie Baby poem 820 00:43:51,838 --> 00:43:53,065 {\an8}that I ever wrote. 821 00:43:53,089 --> 00:43:54,566 {\an8}This is Stripes the Tiger. 822 00:43:54,590 --> 00:43:56,276 {\an8}"Stripes was neither fierce nor strong. 823 00:43:56,300 --> 00:43:59,947 {\an8}So with other tigers, she did not get along. 824 00:43:59,971 --> 00:44:01,365 {\an8}Jungle life was hard getting by, 825 00:44:01,389 --> 00:44:04,326 {\an8}so she came to live with her friends at Ty." 826 00:44:04,350 --> 00:44:06,119 {\an8}[ Laughs ] 827 00:44:06,143 --> 00:44:09,814 {\an8}♪♪