The LEGO Group, known by most simply as LEGO, is one of the most iconic and beloved toy companies in the world. Their colorful interlocking plastic bricks have captivated children and adults alike for over 60 years. But behind this beloved toy brand is a complex corporate history and ownership structure. So who actually owns LEGO? Let’s take a closer look.
The Early Days of LEGO
LEGO was founded in 1932 by Ole Kirk Christiansen in Billund, Denmark. Originally a small carpentry workshop, in 1934 Christiansen began producing wooden toys, eventually naming his company “LEGO” in 1934 based on the Danish phrase leg godt, meaning “play well”. The company expanded into plastic toys in 1947 and released their now famous interlocking bricks, called Automatic Binding Bricks, in 1949. The bricks were an evolution of a previous plastic and wood toy created by Christiansen.
Under Ole Kirk Christiansen’s leadership, LEGO began exporting toys to Europe and the United States in the 1950s. Godtfred Kirk Christiansen, Ole’s son, was appointed managing director of LEGO in 1957. In 1958, the iconic LEGO brick design we know today was created, allowing for better interlocking ability. The company patented the new brick design. Godtfred led the company to great success, opening LEGO’s first theme park, LEGOLAND, in 1968.
LEGO Ownership Transition
Ole Kirk Christiansen died in 1958, leaving leadership of LEGO to his son Godtfred. Godtfred was instrumental in LEGO’s expansion internationally. When Godtfred stepped down in 1979, control of LEGO was passed to the next generation of the Christiansen family.
Kjeld Kirk Kristiansen, Godtfred’s son, became President and CEO of LEGO. A partial ownership stake was also given to Godtfred’s daughters. In the following years, LEGO underwent something of a “boom and bust” cycle. The company saw tremendous success in the late 1990s, but overextended itself, leading to financial struggles in the early 2000s. Kjeld worked to reposition LEGO for stability.
Current LEGO Group Ownership Structure
Today, the LEGO Group remains under the leadership of the Kristiansen family. Here is the current ownership structure of the LEGO Group:
- 75% owned by KIRKBI Invest A/S
- 25% owned by LEGO Foundation
KIRKBI Invest A/S is the holding and investment company of the Kristiansen family. Kjeld Kirk Kristiansen, the grandson of LEGO’s founder Ole Kirk Christiansen, is the majority owner and Chairman of KIRKBI. Thomas Kirk Kristiansen, Kjeld’s son, is also on the Board of Directors and is being groomed for future leadership of LEGO. Other descendants of Ole Kirk Christiansen hold minority stakes in KIRKBI.
The LEGO Foundation is a non-profit entity created by members of the Kristiansen family to own 25% of LEGO and utilize profits for charitable educational purposes.
So while LEGO Group operates independently, the Kristiansen descendents maintain full ownership control through KIRKBI Invest and the LEGO Foundation.
Other LEGO Group Facts:
- LEGO experienced tremendous growth but overextended itself in the 1990s. By 2003, the company was almost bankrupt.
- In response to financial struggles, LEGO sold its LEGOLAND Parks to Merlin Entertainments Group in 2005 but still receives royalties.
- Jørgen Vig Knudstorp led a major turnaround as LEGO CEO from 2004 to 2016.
- Today, LEGO produces over 19 billion bricks per year. There are about 62 LEGO bricks for every person on Earth.
- While always family-owned, LEGO Group became privately-held again in 2017 after a period of being traded publicly from 1997 to 2005.
LEGO Brands and Products
While LEGO System bricks remain the core LEGO product, the company produces a vast range of products across multiple brands:
| Brand | Description |
|---|---|
| LEGO System | The interlocking bricks and sets most people associate with LEGO. |
| DUPLO | Larger bricks suited for younger children. |
| TECHNIC | Advanced sets with more complex building. |
| MINDSTORMS | Programmable robotics sets. |
| BIONICLE | Buildable action figures. |
| Architecture | Brick sets aimed at adult hobbyists to construct architectural models. |
| LEGO Friends | LEGO sets targeting girls. |
In addition to physical brick sets, LEGO has expanded into movies, TV shows, books, board games, video games, and even LEGOLAND amusement parks.
Conclusion
For over 60 years, LEGO has been the dominant company in the interlocking brick toy market. Though challenges in the 1990s and early 2000s threatened its survival, the company recovered by maintaining its focus on what made it successful – imaginative, open-ended play through its core System bricks. The LEGO Group remains under the steadfast private ownership of the Kristiansen family, its third and fourth generations actively managing operations today. With over 500 billion bricks sold to date, LEGO seems poised to continue its reign as king of the bricks for decades to come.