One of the biggest names in toys is buying one of the oldest. Toys 'R' Us will announce tomorrow that it has struck a deal to purchase FAO Schwarz for an undisclosed amount, reports the New York Times. The store's name won't change. FAO has been a New York City institution since 1862, and Tom Hanks famously danced on its giant keyboard in the 1988 movie Big.
“At its core this is about one of the world’s greatest brands,” said Toys 'R' Us chief Gerald L. Storch. “It’s a store that’s steeped in tradition as well as popular culture.” His company also will take possession of the second FAO store, in Las Vegas. At one point, FAO had dozens of stores around the nation, but it has shrunk in recent years.
(Read more FAO Schwarz stories.)