Amazon purchased Whole Foods Market on Friday for $13.7 billion
On Friday morning Amazon announced a stunning new addition to their empire, Whole Foods. The deal is valued at approximately $13.7 billion. It is Amazon’s largest transaction to date, as Amazon is paying $42 a share in cash to acquire the organic-food chain. The company’s previous big ticket purchase was in 2014, when they bought Twitch Interactive Inc., a video-game service, for $970 million in cash.
In a press release announcing the sale, Jeff Bezos, Amazon’s CEO, praised Whole Foods and touted it’s role as a provider of healthy meal options.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” said Bezos. “Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they’re doing an amazing job and we want that to continue.”
As per the agreement, Whole Foods will continue to operate it’s stores, doing so under the Whole Foods Market name and brand. The company’s CEO John Mackey will be staying on in the same role. Mackey has been known to call Whole Foods his “baby,” and had grown concerned about the future of Whole Foods after Jana Partners LLC acquired a stake in Whole Foods earlier this year and immediately began lobbying for a deal to find a buyer for the company.
It’s still too early to tell what kind of changes Amazon may or may not implement and how things will impact Whole Foods. According to Michael Pachter, an analyst at Wedbush Securities Inc. “Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage. I assume the physical presence gives them the ability to distribute other products more locally. So theoretically you could get 5-minute delivery.”
Yet while the exact details and plans going forward aren’t known, Twitter was quick to respond to Amazon’s latest purchase, with reactions varying from snarky to shocked, concerned to thrilled.
Wow, Amazon is buying Whole Foods?! Amazon, Facebook, Apple and Google are going to end up owning everything, aren’t they?
Jeff Bezos: “Alexa, buy me something from Whole Foods.”
Alexa: “Sure, Jeff. Buying Whole Foods now.”
Jeff Bezos: “WHA- ahh go ahead.”
Amazon to buy Whole Foods for $13 billion. Same price as Whole Foods salmon.
[at Amazon HQ]
“Okay, so the $14 billion Whole Foods deal is locked in? Great. Next up: Where are we with the Glenn Close zombie comedy?” t.co/EatkcbBFaR
AMAZON, 1998: hello we sell books but online
AMAZON, 2023: please return to your Primehouse for your nightly Primemeal, valued Primecitizen
Amazon: We bought Whole Foods!
Amazon’s Amazon account: You may also like Trader Joe’s, Bristol Farms & Wegmans!
Whole Foods, who packs a month’s supply of food in a single grocery bag was bought by Amazon, who ships a paper clip in a refrigerator box.