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}♪♪