BabyUniverse and EToys Direct union spawns ‘The Parent Company’
EToys Direct and BabyUniverse have completed their $276 million merger.
The new company is positioned to serve families with children from pre-birth to their teens. “The combined company will offer an impressive combination of resources that satisfy the needs of, and create an online community for, new and growing families,” says John Textor, chairman of the board and former chairman and CEO at BabyUniverse.
The new company is expected to be renamed “The Parent Company,” pending shareholder approval, and will occupy eToys’ Denver headquarters.
EToys, No. 101 in the Internet Retailer Top 500 Guide, is a direct marketer of toys and other youth-related products. BabyUniverse, No. 207 in the Internet Retailer Top 500 Guide, provides content and products in the pregnancy, baby and toddler marketplace.
The transaction was approved by BabyUniverse shareholders on October 12. The merger was previously approved by eToys Direct shareholders, including its largest shareholders, members of the D. E. Shaw Group, an investment and technology development company.
Net revenue in the first half at BabyUniverse slipped 11% to $16 million from $18 million a year earlier, the company reported in August. Net loss in the first half more than doubled to $3.7 million from $1.4 million. EToys was privately held.
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