Squishmallows: TikTok sensation is Buffett’s bet – 05/13/2023 – Market

The Squishmallows joined Warren Buffett’s business empire two years after Lady Gaga, Kim Kardashian and others helped make stuffed toys go viral on TikTok.

For Judd Zebersky and Laura Zebersky, whose company Jazwares makes the toys, the success of the Squishmallows is far from what they imagined when they met 33 years ago at the University of Miami law school.

They were married in 1993 and pursued legal careers, but Judd Zebersky soon realized this was not his destiny. Four years later, he founded Jazwares, of which he is now CEO.

“I’ve really loved pop culture since I was a kid,” Zebersky said in an interview during the annual shareholder weekend for Buffett’s Berkshire Hathaway in Omaha, Nebraska, this month.

“I liked comics and toys, and I’m also an artist — not a very good one,” he said. “I looked at my wife and said, ‘I want to make toys.’ She said, ‘Follow your dreams,’ and I did.”

Laura Zebersky, an attorney, sold her practice in 2005 and joined it, becoming president of Jazwares.

Jazware sales exceeded US$ 1 billion (about R$ 4.92 billion in today’s exchange rate) in 2021. About 40% came from Squishmallows, as the number sold exceeded US$ 100 million, and the rest from brands internal and licensed, including Fortnite, Pokemon and Star Wars.

Berkshire bought Jazwares’ parent company, insurance holding company Alleghany, for US$11.5 billion (about R$56.6 billion) in October last year. He has not spoken about Jazwares’ business performance since then.

“Jazwares is a gem,” Buffett said in an emailed statement. “And, Judd and Laura are the ideal managers at Berkshire.”