The world’s largest toy company is starting to play in the $1 trillion education business.
What happened: Lego owner Kirkbi A/S is buying video-learning firm Brainpop for US$875 million as the company expands into classroom learning, per The Wall Street Journal.
- Brainpop’s educational animated videos reach 25 million US children annually, which will help Lego expand its educational toy set business and plans to build a child-friendly metaverse.
Lego has made roughly 15 minority investments in education-technology companies in the past five years, part of the company’s expansion beyond traditional plastic bricks and little guys with sunglasses.
- Lego reported double-digit revenue growth for the first half of the year, with sales leaving toy industry rivals Hasbro and Mattel in the dust.
Why it matters: As well know, kids these days are on their screens probably more than is healthy, but well-designed programs with educational goals can make screen time a more enriching experience.
Yes, but: Amid a teacher shortage and pandemic-related lockdowns, schools tripled down on-screen use, which (in excess) is linked to physical, social and attention problems in kids.
Bottom line: Moving beyond R2-D2 and Taj Mahal sets, the company stands to benefit from an education industry that is expected to be worth nearly two trillion dollars by 2025.