Wham–O's Offer to Buy Sprig Toys: Selling in or Selling Out?

Abstract

Sprig Toy's mission was to deliver eco–friendly, battery–free, paint–free, kid–powered toys. The company had seen a meteoric rise since its beginning in 2007. Now, however, the founders were at a crossroads. They needed an immediate influx of capital, and on the table was a purchase offer from Wham–O ® . As social entrepreneurs, their decision was not purely financial. They had wanted to start a company that would change both the market (how kids played) and the industry (how toys were manufactured)—but now, they had to make a decision regarding the offer to buy their company, and they worried whether they were “selling out.”