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In 1994 Todd McFarlane was working with Mattel to produce action figures based on his comic book characters. When the two could not decide on how to make the toys to McFarlane's satisfaction, he reclaimed the toy rights to his characters and started his own toy company.
Originally dubbed "Todd's Toys," the name was changed in 1995 following pressure from Mattel, who feared that the new company's name would be confused with that of Barbie's younger brother.
Production began with action figures based upon Todd McFarlane's Spawn comic series and has since grown to feature a large number of licensed property lines including The Simpsons.