Jakks Pacific, the Malibu-based toy company that is making toys for The Mummy Returns, has executed a letter of intent to acquire the business of 21st Century Toys Inc., an Alameda-based company which specializes in high end 12-inch military action figures and vehicles, including the Ultimate Soldier lines.

In its first quarter report issued late last month, Hasbro reported a quarterly loss of $25 million, far worse than Wall Street estimates, and attributed the shortfall to rapidly falling sales of the Pokemon CCG.

Todd McFarlane is taking on toy giant Hasbro/Kenner and their venerable Starting Lineup sports action figures with his own line which he has christened 'McFarlane's Sports Picks.'