Amazon buys rainbow store

Apple is buying rainbow store chain Toys ‘R Us, and the combined company is expected to be worth as much as $7 billion.

The company has been working to grow its retail business and build up a foothold in the home entertainment space with its streaming video service and its entertainment-focused electronics division, Amazon Prime.

The retailer, whose stock has been trading near $200 per share for months, also has a majority stake in online retailer Rackspace, which is trying to build a brick-and-mortar store network.

Amazon acquired Toys ‘r Us and its mobile entertainment unit, Rainbow, from Sears for $7.4 billion in August, making it the world’s largest online retailer by revenue.

Walmart and Sears both have a minority stake in Toys ‘N’ More.

Toys ‘R’ Us also is a division of Sears.

Toys ‘n’ More owns more than 4,000 retail stores across the country, according to the company.