<ARTICLE> 5 <CIK> 0000719612 <NAME> THE LEARNING COMPANY <MULTIPLIER> 1,000 <CURRENCY> U.S. CURRENCY <PERIOD-TYPE> 3-MOS <FISCAL-YEAR-END> JAN-02-1999 <PERIOD-START> JUL-05-1998 <PERIOD-END> OCT-03-1998 <EXCHANGE-RATE> 1 <CASH> 234,796 <SECURITIES> 0 <RECEIVABLES> 117,247 <ALLOWANCES> 46,637 <INVENTORY> 44,507 <CURRENT-ASSETS> 51,941 <PP&E> 63,711 <DEPRECIATION> 0 <TOTAL-ASSETS> 746,955 <CURRENT-LIABILITIES> 252,997 <BONDS> 190,955 <PREFERRED-MANDATORY> 0 <PREFERRED> 0 <COMMON> 0 <OTHER-SE> 228,283 <TOTAL-LIABILITY-AND-EQUITY> 746,955 <SALES> 212,723 <TOTAL-REVENUES> 212,723 <CGS> 63,011 <TOTAL-COSTS> 223,805 <OTHER-EXPENSES> 0 <LOSS-PROVISION> 0 <INTEREST-EXPENSE> (1,215) <INCOME-PRETAX> (12,297) <INCOME-TAX> 12,442 <INCOME-CONTINUING> (24,739) <DISCONTINUED> 0 <EXTRAORDINARY> 0 <CHANGES> 0 <NET-INCOME> (24,739) <EPS-PRIMARY> (.28) <EPS-DILUTED> (.28)