BabyUniverse, Inc. (POSH), an online retailer of baby and maternity products, on Wednesday reported signing a definitive merger agreement with eToys Direct Inc., an e-commerce and direct marketer of toys. On completion of the all-stock merger, BabyUniverse shareholders will own approximately one third of the shares outstanding of the combined company and eToys shareholders will own approximately two thirds. The transaction, which has been unanimously approved by the boards of both the companies, is expected to close in the second or third quarter of 2007 subject to approval by BabyUniverse shareholders.Textor, Chairman and chief executive officer of BabyUniverse, said, Consistent with our previously stated ambitions, we are thrilled to conclude our strategic review process with the announcement of a strategically compelling transaction that we believe will be accretive. He added further that eToys is a well-established Internet brand with revenues, customer relationships and fulfillment infrastructure that are considerably more significant than BabyUniverse.eToys Direct, Inc. was founded in 2004 when a management buyout led by eToys chief executive officer Michael Wagner and affiliates of the D. E. Shaw group purchased certain of the assets of KB Toys, Inc. For the fiscal year ended February 3, 2007, eToys generated approximately $117 million in unaudited net sales.John Textor, Chairman and chief executive officer of BabyUniverse, will remain as Chairman of the board of the combined company while eToys chief executive officer, Michael Wagner, will serve as the chief executive officer.POSH is trading at $7.45, down $0.48 or 6.05% on a volume of 65,109 shares.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.