Toyland rivals to play together
Toys 'R' Us to acquire upscale retailer FAO Schwarz. New York and Las Vegas stores to operate under Schwarz name.
NEW YORK (CNNMoney.com) -- Toys "R" Us has acquired upscale rival FAO Schwarz, the oldest toy retailer in the United States, the company said Thursday.
Terms of the deal between the privately held companies were not disclosed.
FAO Schwarz, which has been in operation since 1862, is legendary for its flagship stores in New York City and Las Vegas, which have become tourist destinations. Toys "R" Us said both stores will remain open under the FAO Schwarz name, and FAO Schwarz's e-commerce and catalog operations will continue.
"We have enormous respect for the FAO Schwarz brand and for the special place it holds in the hearts of children everywhere," said Jerry Storch, Toys "R" Us chairman, in a statement. "We are committed to providing the loyal clientele of FAO Schwarz with the unique shopping experience they have come to expect." 
