The manufacturer of the Rubik's Cube announced the acquisition of an AI developer run by children

Canada-based Spin Master, which manufactures Rubik’s Cubes and produces the animated series “Paw Patrol,” has announced the acquisition of the American company Hapiko. Its main product is the “magic station” Stickerbox, which is based on artificial intelligence technology and operated by children.

Spin Master has agreed to acquire the U.S.-based company Hapiko, the maker of the AI device Stickerbox, the Canadian company announced. The parties did not disclose the transaction amount. It ranges from $35 million to $50 million, according to The Wall Street Journal. Spin Master’s shares are traded on the Toronto Stock Exchange and on the over-the-counter market in the U.S.

The acquisition will enable Spin Master to more quickly realize its vision of "the future of play" and give children access to "tools that allow them to bring their imaginations to life in new ways," said Spin Master CEO Christine Miller, as quoted in a company press release.

Stickerbox is a “magic station” that generates images based on children’s verbal descriptions. The pictures can then be printed as stickers and colored in. The device was invented by Arun Gupta, founder of the online vintage clothing store Grailed, and his colleague Bob Whitney, who has also worked at The New York Times Games and Anthropic. The device first went on sale in late 2025 and has since sold out 13 times, according to a press release.

Stickerbox looks like an Etch A Sketch (a “magic screen” for drawing with aluminum powder inside), but in the shape of a cube, making it a good fit for Spin Master’s product line, which also includes similar “screens,” according to the WSJ. “If you transported an Etch A Sketch into the future, it might look something like this,” Miller told the publication.

The Canadian company Spin Master was founded in 1994 by childhood friends Ronen Harari and Anton Rabi after they graduated from college; Ben Varadi, a former classmate of Rabi’s, joined them shortly thereafter.

Their startup capital was $10,000, and their first product was Earth Buddy—a head covered in a nylon stocking and filled with sawdust mixed with grass seeds, which grew to look like hair. During the first six months, sales of Earth Buddy totaled $1.5 million. Harari told Business Insider in an interview that their success was due to their youth and lack of experience. “When you’re 25, no one sees you as a competitor,” he said.

Spin Master currently operates in 20 countries across three business segments: toys, entertainment, and games. Among its best-known brands are PAW Patrol, Melissa & Doug, Bakugan, and the Rubik’s Cube. For the second quarter, the company’s revenue increased by 8.9% year-over-year to $436.4 million. Net income for the same period was $29.7 million ($0.29 per diluted share), compared with a net loss of $46.5 million ($0.46 per share).

The news of Spin Master’s acquisition of Hapiko did not generate much excitement among investors. In Toronto, the Canadian company’s stock fell 0.8% on August 17 to 20.8 Canadian dollars. In over-the-counter trading in New York, the stock price remained virtually unchanged from the previous day at $15.1.

Seven Wall Street analysts recommend buying Spin Master stock, while three others recommend holding it. The average price target is $18.77, which is 24% higher than the stock's most recent closing price.