• Hey, guest user. Hope you're enjoying NeoGAF! Have you considered registering for an account? Come join us and add your take to the daily discourse.

Amazon to buy Whole Foods for $13.7 billion cash

W

winjet81

Member
Stopped shopping at Whole Foods 4-5 years ago because ti became so expensive to shop there.

With so many cheaper options out there, it'll be interesting to see how this acquisition brings former shoppers like me back.
 
C

cameron

Member
MORE: Target shares down 10.7 percent in morning trade after Amazon-Whole Foods deal announced

— Reuters Business‏ (@ReutersBiz) June 16, 2017​

aNK6OGj.png
 
T

TheOfficeMut

Unconfirmed Member
ponpo said:
Better ask Alexa to return that dry-ass ratio and order something better!!
Click to expand...

I also buy 90%. I don't like it fatty and I put enough seasoning where it tastes fine.

cameron said:
MORE: Target shares down 10.7 percent in morning trade after Amazon-Whole Foods deal announced

— Reuters Business‏ (@ReutersBiz) June 16, 2017​

aNK6OGj.png
Click to expand...

Buy buy buy

Then sell sell sell before Best Buy

Then buy buy buy
 
S

Steel

Banned
We're slowly headed toward a future where Amazon reigns as the rulers of the free world through market acquisition.

Better than Trump, though.
 
C

Cymbal Head

Banned
Can we please stop freaking out about AI and start worrying about the ever-expanding control of a few tech companies over everything in our lives?
 
R

RumblingRosco

Member
Nategc20 said:
CNBC saying Best Buy is next.

Amazon going physical fam.
Click to expand...

Whole Foods was worth about $10B before this deal. Best Buy is worth about $17B. Whole Foods was purchased at roughly a 33% premium. If they did the same for Best Buy, it'd cost them around $23B. My understanding is that Amazon currently has between $15-$20B cash & equivalents, so they probably can't buy Best Buy anytime soon on top of the Whole Foods deal without a good deal of debt - well, at least not as a cash offer. I'm sure they can do it through stocks or taking on debt, etc.

But, the point being, I'd be surprised if Amazon makes another purchase like Whole Foods anytime soon, especially a larger one. There's only so much they can buy at a time and only so much they can manage/take on at once risk-wise.
 
Hari Seldon

Hari Seldon

Member
Soka said:
Whole Foods was worth about $10B before this deal. Best Buy is worth about $17B. Whole Foods was purchased at roughly a 33% premium. If they did the same for Best Buy, it'd cost them around $23B. My understanding is that Amazon currently has between $15-$20B cash & equivalents, so they probably can't buy Best Buy anytime soon on top of the Whole Foods deal without a good deal of debt - well, at least not as a cash offer. I'm sure they can do it through stocks or taking on debt, etc.

But, the point being, I'd be surprised if Amazon makes another purchase like Whole Foods anytime soon, especially a larger one. There's only so much they can buy at a time and only so much they can manage/take on at once risk-wise.
Click to expand...

Best Buy doesn't make sense other than to get into the appliance game. Amazon already sells everything that Best Buy does except appliances. Whole Foods makes a ton of sense because groceries are largely untapped by Amazon in most of the US.

Edit: It would make more sense for Amazon to buy something like Home Depot that sells appliances and other things that Amazon doesn't really sell.
 
G

GoldenEye 007

Member
Welp, that's an easy way to get physical storefront space. I'm sure Amazon Fresh will be a big thing there, but I wouldn't be surprised if some are used to sell various products.
 
EviLore

EviLore

Expansive Ellipses
Staff Member
Prime Now in Austin recently started offering delivery from Sprouts in addition to Amazon's products. Owning Whole Foods outright will give them a *substantial* inventory to add to Prime Now for every major city in the US and a strong distribution network for things they're currently not very deep in.

While Whole Foods has been struggling with competition in the organic supermarket space recently, they retain a *lot* of prime retail space, from their HQ acting as a cultural hub in downtown Austin, to Columbus Circle, a billion spots in the Bay Area and SoCal, to Central London even. Amazon could leverage this in all sorts of potential ways.

Also note that automated "walk out the store with your purchases and get charged automatically" no-checkout retail tech they've been showing off recently.
 
M

Mindwipe

Member
Hopefully Amazon will do a decent grocery service in the UK sometime, the current one is godawful (partnering with bloody Morrisons FFS).

Oh, but if this results in the Whole Foods in Piccadilly Circus getting an Amazon locker that'd be nice...
 
You must log in or register to reply here.

Similar threads

Microsoft-Activision is a done deal – but what if the FTC still wins? Ask Whole Foods.
News
14
2K
Kuranghi replied
Warner Bros. Discovery Negotiating $500 Million Deal to Sell Film and TV Music Publishing Assets - Sony in lead to buy
2
1K
AlteredForms replied
[Bloomberg] Sony’s Pursuit of Anime Publisher Holds More Opportunity Than Risk
Opinion Analysis 2
73
6K
kingfish replied
WWE and Endeavor (UFC) announce 21 billion dollar deal.
40
3K
thefool replied
[CNN Business] Elon Musk is worth more than twice Warren Buffett and has $100 billion on Jeff Bezos
2
62
5K
Torrent of Pork replied
Top Bottom