RealTime IT News

Scholastic Bows Out of eToys Bid

Scholastic Corp. withdrew its $8 million bid for the assets of now-defunct eToys.com.

The announcement was made Monday evening after the closing bell. Throughout the day, the New York City-based children's publisher saw its shares fall by about 13 percent, dropping from an opening price of $40 to a $35.13 close.

The $8 million bid for eToys assets was contingent on winning a separate auction for all eToys shares. A Scholastic spokesperson told internetnews.com that the ultimate plan for the purchase was to revise the company's Web site and create ecommerce offerings that include both educational and non-educational product offerings.

A reorganized Web site is still under development but the eToys' assets are not crucial to the plan, according to a statement released by Scholastic.

The proposed acquisition did not meet Scholastic's standards for reducing costs or accelerating Web initiatives, the statement said.

Calls to the book publisher for further comment were not returned as of press time.