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A Whole New Game for Toys 'R' Us

The soon-to-be new owners are going private in a $6.6 billion deal. That's the easy part. Regaining profits and customers will be tougher

By Nanette Byrnes

On Mar. 17, as the drums and bagpipes of the St. Patrick's Day Parade boomed only blocks from its showcase store in New York's Time Square, Toys 'R' Us (TOY ) gave its shareholders a bit of green. After a seven-month "strategic review," the board voted to accept an offer from a trio of high-powered financiers: buyout firm Kohlberg Kravis Roberts (KKR), Bain Capital Partners, and real estate high flyers Vornado Realty Trust. Stock in the toy- and baby-goods retailer immediately jumped $1.23, to end the day at $26, near the $26.75 the trio will give shareholders to take the concern private.