Disney Takes Majority Stake in toysmart.com
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Looking to get in on this year's predicted online holiday shopping boom, The Walt Disney Co. Wednesday invested a controlling stake in online toy retailer toysmart.com.
Disney's Buena Vista Internet Group (BVIG) reportedly took a 60 percent stake in toysmart.com for $20 million with another $25 million in free advertising, according to the New York Times. The companies did not disclose any financial details, but said that BVIG will hold three of five seats on the toysmart.com board of directors and will provide marketing support to help build the toysmart.com brand.
Unlike other online toy companies, toysmart.com specializes in retailing educational and high-quality toys and games for children. The site also provides information and resources for parents and care givers.
"toysmart.com and BVIG believe that high quality, educational toys represent an exciting business opportunity in a fast-growing market segment," said Chuck Davis, president of eCommerce at BVIG.
"Our investment in toysmart.com strengthens our commitment to serving the online commerce needs of families."