{{Short description|Online toy retailer}} {{lowercase title}} {{Infobox company | name = eToys.com | logo = EToys logo.png | caption = | fate = Acquired by Toys R Us | successor = | founded = {{start date and age|1997|11|3}}<ref>{{cite web|url=http://whois.domaintools.com/etoys.com|title=EToys.com WHOIS, DNS, & Domain Info - DomainTools|work=WHOIS|date=|accessdate=2016-07-26|archive-date=2017-04-22|archive-url=https://web.archive.org/web/20170422115012/http://whois.domaintools.com/etoys.com|url-status=live}}</ref> | defunct = {{end date and age|2009}} | industry = Toys | key_people = | products = Toys | num_employees = | parent = Toys "R" Us }}
'''eToys.com''' was a retail website that sold toys via the Internet. It was established by a startup company of the same name on November 3, 1997. After an initial public offering on January 4, 1999, the company quickly shot up in value, becoming emblematic of the dot-com bubble. The company went bankrupt on April 1, 2001, and shut down soon thereafter. The etoys.com domain went through a number of changes of ownership afterwards, and has been owned by Toys "R" Us since February 2009.
==History== eToys was launched on November 3, 1997, as an Idealab company.<ref>{{cite web |url=http://www.idealab.com/our_companies/show/all/etoys |title=Idealab: Our Companies: eToys |work=Idealab |access-date=2016-01-18 |archive-url=https://web.archive.org/web/20160203161623/http://www.idealab.com/our_companies/show/all/etoys |archive-date=2016-02-03 |url-status=dead }}</ref> In 1999, eToys held an IPO. Shares were issued at $20. At the end of the first day of trading, the stock closed at $76 a share.<ref>{{cite web |url=http://www.thestandard.com/news/2008/05/29/where-are-they-now-etoys-com |title=Where are they now: eToys.com |first=David |last=Cotriss |work=The Industry Standard |date=May 9, 2008 |url-status=dead |archiveurl=https://web.archive.org/web/20090303230337/http://www.thestandard.com/news/2008/05/29/where-are-they-now-etoys-com |archivedate=March 3, 2009 }}</ref> eMarketer was once quoted as saying; "Put simply, eToys is the benchmark against which all other toy sites are measured".<ref>{{cite news | url = http://www.thefreelibrary.com/eToys+Named+%231+Online+Toy+Store+Website%3B+eMarketer%27s+Top+10+List...-a067265225 | title = eToys Named #1 Online Toy Store Website; eMarketer's Top 10 List Rates Outstanding Online General Toy Merchants | work = Business Wire | date = November 22, 2000 | access-date = October 8, 2012 | archive-date = December 28, 2013 | archive-url = https://web.archive.org/web/20131228085939/http://www.thefreelibrary.com/eToys+Named+%231+Online+Toy+Store+Website%3B+eMarketer%27s+Top+10+List...-a067265225 | url-status = dead }}</ref> In 1999, the company was involved in a high-profile dispute with Swiss art site etoy. EToys attempted to seize the etoy.com domain from etoy on the grounds that it was confusingly similar to its own domain, but it relented after widespread Internet outrage.<ref>{{cite news | url = https://www.wired.com/1999/12/etoys-relents-wont-press-suit/ | work = Wired.com | title = EToys Relents, Won't Press Suit | date = December 29, 1999 | access-date = October 4, 2023 | archive-date = February 3, 2023 | archive-url = https://web.archive.org/web/20230203145549/https://www.wired.com/1999/12/etoys-relents-wont-press-suit/ | url-status = live }}</ref>
== Bankruptcy ==
Around March 7, 2001, ''The Wall Street Journal'' reported that KB Toys acquired the bulk of eToys' remaining assets for $5 million.<ref name="NYTimes 2008">{{cite news | url = https://www.nytimes.com/2008/12/30/business/30shop.html?_r=1&adxnnl=1&ref=business&adxnnlx=1244694327-mytT8mvOALlccVDE+/ks3A | work = The New York Times | title = Parent Company, a Retailer, Files for Bankruptcy | first = Stephanie | last = Rosenbloom | date = December 30, 2008 | accessdate = May 2, 2010 | archive-date = January 9, 2014 | archive-url = https://web.archive.org/web/20140109022217/http://www.nytimes.com/2008/12/30/business/30shop.html?_r=1&adxnnl=1&ref=business&adxnnlx=1244694327-mytT8mvOALlccVDE+/ks3A | url-status = live }}</ref> Bain Capital owns KB Toys. The law firm Traub, Bonacquist & Fox represented the creditors in the Chapter 11 bankruptcy proceedings. Paul Traub, a partner in the firm, had shortly before formed a company called Asset Disposition Advisors, LLC with Barry Gold. This relationship became controversial when Gold was appointed CEO of eToys. Some complained there was a conflict of interest, though a judge later found no fault.<ref>{{cite web | url = http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/07/potential_confl.html | title = Potential Conflict Problem for Bankruptcy Law Firm | publisher = White Collar Crime Prof Blog | date = July 26, 2005 | access-date = May 14, 2009 | archive-date = May 10, 2009 | archive-url = https://web.archive.org/web/20090510085154/http://lawprofessors.typepad.com/whitecollarcrime_blog/2005/07/potential_confl.html | url-status = live }}</ref><ref>{{cite news | url = http://www.post-gazette.com/pg/05206/543481-28.stm | work = The Wall Street Journal | title = EToys Investors Claim Conflict At Law Firm | date = July 25, 2005 | first = Joseph | last = Pereira }}</ref>
==Subsequent ownership== Nearly all the eToys assets were acquired by KB Toys in two separate bankruptcy auctions, then later sold to D. E. Shaw, a New York-based hedge fund. The eToys.com website was eventually reopened by eToys Direct Inc., a descendant of Internet startup and KB Toys partner Brainplay.com, and a subsidiary of Parent Company. It continued to market toys by mail order under the eToys name through both the website and printed catalogs. Parent Company and nine of its subsidiaries including eToys Direct filed for Chapter 11 bankruptcy on December 22, 2008.<ref name="NYTimes 2008" /> eToys.com was acquired by Toys "R" Us in February 2009.<ref>{{cite news | url = https://www.tulsaworld.com/business/toys-r-us-acquires-troubled-fao-schwarz/article_95a54a77-bac1-507e-9360-621da2b36190.html | title = Toys R Us acquires troubled FAO Schwarz | first = Mae | last = Anderson | agency = Associated Press | publisher = Tulsa World | date = May 29, 2009 | access-date = June 30, 2019 | archive-date = June 30, 2019 | archive-url = https://web.archive.org/web/20190630173248/https://www.tulsaworld.com/business/toys-r-us-acquires-troubled-fao-schwarz/article_95a54a77-bac1-507e-9360-621da2b36190.html | url-status = live }}</ref>
==References== {{reflist}}
==External links== *[https://web.archive.org/web/20010130072000/http://www.etoys.com/ eToys.com]
Category:Toys "R" Us Category:American companies established in 1997 Category:Retail companies established in 1997 Category:Internet properties established in 1997 Category:Retail companies disestablished in 2009 Category:Internet properties disestablished in 2009 Category:Toy retailers of the United States Category:Online retailers of the United States Category:Defunct online companies of the United States Category:Companies that filed for Chapter 11 bankruptcy in 2001 Category:Companies that filed for Chapter 11 bankruptcy in 2008 Category:Dot-com bubble Category:1999 initial public offerings