The name Lego® is an abbreviation of two Danish words leg godt, meaning “play well.” The LEGO Group was founded in 1932 by Ole Kirk Kristiansen. The company has passed from father to son and is now owned by Kjeld Kirk Kristiansen, a grandchild of the founder.

Source: https://www.lego.com/en-us/aboutus/lego-group/the_lego_history