Amazon announced today it has agreed to buy the Whole Foods grocery chain for $13.4 billion, as the internet retailer eyes a broader expansion of services.
"dooo it jeff....push the whole foods amazon dash button...dooo it..." pic.twitter.com/TtYG9XTPs6— darth:™ (@darth) June 16, 2017
It's big news.
Does this mean we'll soon be able to get $6 bottles of asparagus water delivered by drone?
Whole Foods will continue to operate under the Whole Foods Market brand.
John Mackey will continue as chief executive of Whole Foods, and the company's headquarters will remain in Austin, Texas. Amazon and Whole Foods expect to close the deal during the second half of 2017.
The proposed deal would have Amazon paying $42 a share for Whole Foods, a 27 percent premium to the stock's closing price on Thursday, one day before the deal was announced. Friday, Amazon rose (3.3% by post time) as Target, Walmart and Costco Wholesale dropped.
Amazon is a monopoly, and the stock market knows it https://t.co/gFZKSG9HPA— Ben Walsh (@BenDWalsh) June 16, 2017
the acquirer's stock is supposed to fall! this is a signal that amazon is assembling/has assembled a powerfully anti-competitive enterprise— Ben Walsh (@BenDWalsh) June 16, 2017
From the New York Times:
For Amazon, the deal marks an ambitious push into the mammoth grocery business, an industry that in the United States accounts for around $700 to $800 billion in annual sales. Amazon is also amplifying the competition with Walmart, which has been struggling to play catch-up to the online juggernaut.
For Whole Foods, the deal represents a chance to fend off pressure from activists investors frustrated by a sluggish stock price. Whole Foods last month unveiled a sweeping overhaul of its board, replacing five directors, naming a new chairwoman and bringing in a new chief financial officer. It also laid out plans to improve operations and cut costs.
With Amazon, Whole Foods gets a deep-pocketed owner with significant technological expertise and a willingness to invest aggressively in a quest for dominance.
And Amazon wants to expand into physical stores.
Amazon did not just buy Whole Foods grocery stores. It bought 431 upper-income, prime-location distribution nodes for everything it does.— Dennis K. Berman (@dkberman) June 16, 2017
People who boycotted Whole Foods over founder's libertarian beliefs should be happy workers can now enjoy Amazon's generous labor policies.— Patrick Nonwhite (@NonWhiteHat) June 16, 2017
Trump admits he is under investigation, Amazon bought Whole Foods and Kenya got married. I can't handle anymore news today.— The Kitchenista (@MissAngelaDavis) June 16, 2017
I mean, Amazon did just buy Whole Foods, so suddenly this makes rather more sense. https://t.co/rV5f7XoIzd— John Scalzi (@scalzi) June 16, 2017
Don't let Amazon buying Whole Foods distract you from the fact that you can get a masters degree for the price of one tub of cashews there— Charlotte Wilder (@TheWilderThings) June 16, 2017
This Amazon-Whole Foods merger may finally put monopoly power at the center of the political world.— Matt Stoller (@matthewstoller) June 16, 2017
Amazon buys Whole Foods for 13.7 billion, roughly equivalent to 11 shopping bags of their organic berries.— Warren Leight (@warrenleightTV) June 16, 2017
Amazon typically doesnt do deal of this size. Until today Zappos had been biggest. By buying Whole Foods, now has 400+ brick & mortar stores— Sally Shin (@sallyshin) June 16, 2017
Since Amazon is buying Whole Foods, I guess they can just keep my paycheck and save everybody a lot of paperwork. #halfkidding— Josh Rogin (@joshrogin) June 16, 2017