Headlines

Amazon.com Plans $847 Million Acquisition of Zappos.com

Deal is expected to close this fall

Published

15 years ago

July 23, 2009

VMSD Staff

Shoe retailers in the offline world should be bracing for more competition from Cyberspace. Amazon.com announced yesterday that it has reached an agreement to acquire Zappos.com, Inc.

Under the proposed deal terms, Amazon.com would acquire all of Zappos.com’s outstanding shares and assume all outstanding options and warrants in exchange for 10 million shares of Amazon common stock. A company statement puts the value at $807 million, based on the average closing price for the 45 trading days ending July 17. Amazon.com also would provide Zappos’ employees with $40 million in cash and restricted stock units. According to Amazon.com’s statement, Zappos would retain both its management team and its independent headquarters in Las Vegas. If the deal goes through, it would be the largest in Amazon's history.

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