Facebook to sell $1bn toy store, toys blog
Facebook has bought a toy store for $1.5bn, in a deal that would be the world’s biggest acquisition of a toy retailer.
The purchase, reported by The Financial Times, will allow the social network to buy toy brands such as Mattel and Playmobil.
Facebook CEO Mark Zuckerberg said the purchase was a “game-changer” for the online retailer, which has struggled to attract new customers.
“We’re buying a lot of toys that are going to be in the world of kids,” Zuckerberg said.
“The world of children is changing.
We need to be able to reach that market.”
The deal comes at a time when Facebook is trying to grow its presence in the toy market, which accounts for nearly one-fifth of Facebook’s revenue.
The acquisition of toys is expected to bolster Facebook’s position in a market that it has struggled with in recent years.
Earlier this month, the company announced a deal to buy video game developer THQ for $5bn.
Facebook has also purchased the online publishing company RocketFuel, which owns titles including the massively popular Lego Batman game.
In addition to buying toy companies, Facebook has been acquiring media companies to expand its reach.
It has been rumored that the purchase of Toys ‘R’ Us would give Facebook a bigger presence in shopping malls, where it already operates a toy aisle, in addition to in online video game sales.