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July 22, 2009
Amazon.com to Aquire Zappos
I love Amazon. I love Zappos. I love how they compete against each other. That's why I'm kind of disappointed that Amazon is acquiring Zappos. It would be like Duke acquiring UNC or the Red Sox acquiring the Yankees.
Alright, alright, here's the details.
Amazon is buying Zappos for 10 million AMZN stock, which is currently worth around $807 million. Also, Amazon is providing Zappos employees with $40 million in cash and restricted stock units. Cha-freaking-ching.
Don't worry, Zappos.com won't be 301-redirecting to Amazon.com anytime soon.
"We are joining forces with Amazon because there is a huge opportunity to utilize each other's strengths and move even faster towards our vision of delivering happiness to customers, employees and vendors," said Tony Hsieh, CEO of Zappos. "We will continue to build the Zappos brand and culture in our own unique way, and we believe Amazon is the best partner to help us do this over the long term."
Alright, Tony. I hope this is the right decision. Don't mess with 6pm.com. I want to get Oakley sunglasses on the cheap!
Posted by Nathania Johnson on July 22, 2009 5:05 PM
Comments
Great business move by both of them. It makes complete sense. Their shoppers are pretty much the same demographic. Zappos does have a great identity already. So I'm sure they won't be messing with that.
Jeremy July 22, 2009 7:20 PM
Now Amazon employees have a great excuse to go to Vegas. Congrats to both firms for getting stronger while the economy gets weaker.
Searchquant July 22, 2009 8:00 PM
nice, work Amazon...monopoly!!!
Thurgood Marshall July 23, 2009 1:47 PM
I really do not understand how this benefits either company.
Kevin July 30, 2009 7:50 PM
