Complex sentence: The Walt Disney Company has licensed Disney-themed Pillow Pets, and stuffed toys such as those based on Thomas the Tank Engine, Dora the Explorer, and SpongeBob SquarePants are being produced as well.
Split into simpler sentences: The Walt Disney Company has licensed Disney-themed Pillow Pets. Stuffed toys based on Thomas the Tank Engine, Dora the Explorer, and SpongeBob SquarePants are being produced as well.