$13.7 billion keeps falling out of your pocket, what do you do?
Amazon (NASDAQ: AMZN) and Whole Foods Market, Inc. (NASDAQ: WFM) today announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market.
Your company is worth almost a half trillion dollars, you have transformed shopping as an art form, and you have put a bug in the ear of the mass cable moguls. What is next? From electronic bookstore to E-commerce giant, Jeff Bezos has gone where no other major retail company tried, from a customer centrist conceptual understanding to On October 11, 2016, Amazon announced plans to build convenience stores and develop curbside pickup locations for food. In December 2016, the Amazon Go store was opened to Amazon employees in Seattle. The store uses a variety of sensors and automatically charges a shopper’s Amazon account as they walk out of the store, therefore there are no checkout lines. The store is planned to open for the general public in early 2017. Can you only imagine, the day that you are not stuck in the lines of a Walmart store only to get to the clerk who is grumpy, slow, and could not care less if you have a nice day or not…
Jeff Bezos was more than upset with himself when he finally took the internet by storm and appeared to be nothing more than a small operation from the start, but today, Amazon.com has a number of products and services available, including AmazonFresh, AmazonPrime, AmazonWeb Services, Alexa, Appstore, Amazon Drive, Echo, Kindle, world wideFire tablets, Fire TV, Video, Kindle Store, Music, Music Unlimited, Amazon Digital Game Store, Amazon Studios, AmazonWireless. After taking over the top spot as retailer in America andworldwide, it is not hard to see why with the line up of companies and Amazon.com’s product lines available at its website include several media (books, DVDs, music CDs, videotapes and software), apparel, baby products, consumer electronics, beauty products, gourmet food, groceries, health and personal-care items, industrial & scientific supplies, kitchen items, jewelry, watches, lawn and garden items, musical instruments, sporting goods, tools, automotive items and toys & games. So If you are Jeff Bezos, and Amazon, what is next?
To compete globally on a scale that will allow for lower delivery costs, you buy, right? Who would you buy? America needs a customer centrist company that will give the true meaning of customer service and loyalty to customers once again. Amazon does this, and with their acquisition of Whole Foods, many more people will see many exciting changes to the world of retail and food shopping. Companies like Walmart lost millions during the announcement of the purchase, while Amazon raised to even greater heights, giving Amazon more power to bring its common sense approach of starting with the customer and ending with the customer approach to their everyday conceptual ideas. Amazon is upending the entire business. Its own market value increased by $15 billion on the news. More significantly, it caused about $30 billion to disappear from Costco, Walmart Stores, Kroger, SuperValu and other grocery vendors. Wow, a two for one deal with the customer winning!!!
The Amazon Press Release read as follows:
“SEATTLE & AUSTIN, Texas–(BUSINESS WIRE)–Jun. 16, 2017– Amazon (NASDAQ:AMZN) and Whole Foods Market, Inc. (NASDAQ:WFM) today announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthily,” saidJeff Bezos, Amazon founder, and CEO. “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.”
“This partnership presents an opportunity to maximize value for Whole Foods Market’s shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience, and innovation to our customers,” said John Mackey, Whole Foods Market founder, and CEO.Whole Foods Market will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world. John Mackey will remain as CEO of Whole Foods Market and Whole Foods Market’s headquarters will stay in Austin, Texas.Completion of the transaction is subject to approval by Whole Foods Market’s shareholders, regulatory approvals, and other customary closing conditions. The parties expect to close the transaction during the second half of 2017.”
What an amazing acquisition. Two forward-thinking well grounded, customer centrist companies combining to bring America a little more service, and a little less stress in their everyday lives. So what does Jeff Bezos do, when he has an extra 13.7 billion dollars? He buys another great company….