Business
Plastic uptick: Lego's sales have stacked in recent years

Plastic uptick: Lego's sales have stacked in recent years

9/30/23 7:00PM

Through brick and thin

Even with Lego’s modern legacy of movies, games, and theme parks, most of us think of Lego in its purest form: bright plastic bricks that can be built into whatever shape your creativity takes, from cars, to condos, to the Colosseum.

Despite the playful design and imaginative spirit that Lego is known for today, its roots actually trace back to the Great Depression. Ole Kirk Christiansen, a carpenter from Billund, Denmark, noticed that the demand for home construction and furniture was waning. To sustain his livelihood, Ole Kirk pivoted to making wooden toys in the early 1930s, which he initially traded for food for him and his family. Two years later, he christened his venture Lego, a name derived from the Danish phrase "leg godt", meaning "play well".

Plastic uptick

Lego's foray into plastic — the precursor to Lego we know today, dubbed by Christiansen as ‘automated binding bricks’ —  didn’t start until 1947, when the material was still novel. However, sales stacked quickly, with plastic toys accounting for half of Lego's production by 1951. A devastating warehouse fire, which consumed the wooden toy inventory, forced the family to fully embrace their plastic future — a transition that marked the beginning of Lego’s meteoric rise. By the mid-1960s, Lego was sold in 40+ countries, and, by the 1990s, the company was one of the world’s largest toy manufacturers.

However, by the early noughties, Lego was struggling. Sales plummeted almost 30% in 2003, pushing the company close to bankruptcy. Seeking a revitalization, Lego appointed its first non-family member CEO, Jørgen Vig Knudstorp, who sold off non-essential parts of the business and went back to basics: halving the number of LEGO pieces produced, cutting jobs, and — perhaps most crucially of all — asking kids what they actually wanted to play with.

AFOLogy

While tracking playtime proved profitable for Lego — as they noticed that, rather than playing for mindless amusement, children enjoyed trying to master a skill with degrees of difficulty — more mature brick enthusiasts have also played a part in Lego’s present-day prosperity.

Indeed, Lego has an enormous legion of AFOLs (Adult Fans Of Lego). Whether driven by nostalgia, the need for stress relief, or just wanting to show people a self-completed 7,541-pieceMillenium Falcon, more adults are discovering, or rediscovering, the joy of Lego. In turn, the company has embraced the trend, designing retro-themed builds (like the $270 Pac-Man set released earlier this year) that tap into adults’ sentimental seeking of childhood favorites, with many AFOLs interested in the "displayability" of Lego sets, like Lego typewriters, Lego bonsai trees… or even a 9,090-piece Titanic model.

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Amazon is testing adding GM electric vans to its EV delivery fleet dominated by Rivian

Rivian may have some competition in its electric delivery van division: Bloomberg reports that Amazon is testing a small number of GM’s BrightDrop vans for its fleet.

According to Amazon, the test currently only includes a dozen of the vehicles. Amazon’s fleet also contains EVs from Ford, Stellantis, and Mercedes-Benz.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

GM debuted BrightDrop in 2021, but the vehicles have struggled to sell and piled up on GM lots due to high prices and steep competition. GM began offering up to 40% rebates on the vehicles this year.

The test comes as Rivian struggles through tariffs and the end of EV tax credits. Earlier this year, it lowered its annual delivery outlook by about 13%. As of June, Amazon said it has more than 25,000 Rivian vans across the US. Earlier this week, Rivian CEO RJ Scaringe said the company is still on track to deliver 100,000 vans to Amazon by 2030 and is “thinking about what comes beyond” that initial target.

GM has sold 1,592 BrightDrop vans through the first half of the year, more than the full-year total it sold in 2024.

business

Paramount Skydance reportedly preparing an Ellison-backed Warner Bros. Discovery takeover bid, sending shares soaring

Paramount Skydance is preparing a majority cash bid for Warner Bros. Discovery, The Wall Street Journal reported, sending shares of both companies surging. The Journal’s sources say the deal is backed by the Ellison family, led by David Ellison.

WBD shares were up 30% on the report, while Paramount Skydance jumped 8%.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

The offer would cover WBD’s entire business — cable networks, movie studios, the whole enchilada. That comes after WBD announced plans last year to split into two divisions: one for streaming and studios, the other for its traditional cable and TV assets. A recent Wells Fargo note gave WBD a price target hike, primarily because the analysts viewed it as a prime takeover candidate.

If the deal goes through, it would bring together HBO, CNN, DC Studios, and Warner Bros.’ film library with Paramount+, Nickelodeon, and MTV, all under one umbrella.

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