eToys Acquires Toys.com
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Under the purchase agreement, eToys will keep its corporate name and will continue to operate its Web site under the eToys brand name. Financial specifics were not disclosed.
"The acquisition of Toys.com clearly illustrates eToys' leadership in the online toy industry," said Toby Lenk, CEO of eToys. "Combining forces with Toys.com will allow eToys to focus on delivering more to consumers and remaining the Internet's top toy store."
eToys will acquire Toys.com's Web site address, its inventory of toy items,and its database of online toy purchasers. As part of the combined stock and cash deal, Greg McLemore, president of Web Magic, will become a significant shareholder of eToys.
eToys was founded in March 1997 by CEO Toby Lenk, formerly a corporate vice president in the strategic planning area of The Walt Disney Company; and by entrepreneur Bill Gross, founder of Knowledge Adventure, a leading children's software company, and chairman of idealab!, an Internet startup.