Disney Buys "Baby Einstein" Company

[lrodk]

Disney announced Tuesday that it has acquired closely held Baby Einstein Co., maker of toys and books for babies and toddlers, for an undisclosed sum, broadening its reach to families with small children.

The acquisition of the Lone Tree, Colorado-based company includes videotapes, DVDs and CDs, as well as a new collection of books and toys Baby Einstein launched this fall in conjunction Disney Publishing Worldwide and toymaker Hasbro Inc. (NYSE:HAS - news)

``We view this acquisition as a core element of our company-wide learning initiative for children,'' Disney President and Chief Operating Officer Robert Iger, said in a statement. ``We are particularly excited about extending from the Baby' series brand into a Little' series that will appeal to preschoolers .''

The ``Little'' product line is scheduled to launch in late 2002.

 

[YoHo]

this could be a good space to be in. Its core in its sensibilities. If the products are highquality, this buisness is likely to be profitable.


What I want to know is how much it cost and when do they plan to get a RoI

 

[Brer-Rabbit]

Baby Eistein products are some of the best on the market. My nephew LOVES them and cannot get enough of them. I am excited that Disney is now involved in them and it is a good fit.

 

[Lesley]

I personally have not been impressed with the Baby Einstein stuff.....as a former early childhood educator.

The fact is there are other companies making similar products better. I don't have a great feeling about this.

 

[Peter Pirate]

First glance. Strong move. But we'll see.

Again, I concur, senor scoop!

But I must wax philosophic and ask, what do you suppose young children needed be exposed to in the times before there were bach & mozart???

 

[YoHo]

There is a disturbing image.

 

[Lesley]

My concern mainly is that the Disney name is once again being watered down by jumping on the bandwagon of a "trend" and not being concerned with keeping the utmost in quality (though this is Disney marketing for the past 6 years at least)

I agree that it could be a good idea to get into this market...however, I think it could be done better. Now if Disney had acquired Neurosmith (they have less products, but much better quality) I'd be all for it.

 

[Panthius]

Hey, maybe they can advertise these products on the Fox Family television network?

I personally do not agree with this move at this time. Now is not a time to be acquiring other companies with the state of the company being in such disarray as it is. How can they justify the severe cuts we are seeing in the parks and the general lack of any money being given to these parks for things as trivial as general upkeep, and then go and purchase multiple companies for hundreds of millions of dollars? If the company were in a better financial position and the economy were also in a better position, I would be more inclined to agree with this move, but with the current state of the company as it is, I can do nothing but disagree with this move at this time.

Pan