The etoys.com domain went through a number of changes of ownership afterwards, and has been owned by Toys "R" Us since February 2009. eToys was launched on November 3, 1997, as an Idealab company.

[5] Around March 7, 2001, The Wall Street Journal reported that KB Toys acquired the bulk of eToys' remaining assets for $5 million.

Paul Traub, a partner in the firm, had shortly before formed a company called Asset Disposition Advisors, LLC with Barry Gold.

[7][8] 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.