Amazon scoops up Zappos.com

The online retailing giant to purchase the online apparel and footwear retailer for $807 million in stock.

EMAIL  |   PRINT  |   SHARE  |   RSS
 
google my aol my msn my yahoo! netvibes
Paste this link into your favorite RSS desktop reader
See all CNNMoney.com RSS FEEDS (close)
By Catherine Clifford, CNNMoney.com staff writer

Pocket books
Netbooks are models of portability. But can you stare at those little screens all day? Our reviewer put three to the test.

NEW YORK (CNNMoney.com) -- Amazon.com has reached an agreement to purchase Zappos.com, the online retailer known for its selection of shoes, for $807 million, according to a statement released Wednesday.

Zappos.com will get approximately 10 million shares of Amazon.com (AMZN, Fortune 500), which is equal to approximately $807 million, based on the average closing price for the 45 trading days ending July 17.

As part of the agreement, Seattle, Wash.-based Amazon.com will also give Zappos.com $40 million in cash and stock for its employees, on top of the $807 million purchase price of the company.

"We will continue to build the Zappos brand and culture in our own unique way, and we believe Amazon is the best partner to help us do this over the long term," said Tony Hsieh, CEO of Zappos, in a written statement.

In a letter to employees Wednesday, Hsieh said that there are no layoffs planned as part of the deal. "Your job is just as secure as it was a month ago."

The acquisition should be completed during the Fall of 2009, according to the statement.

Amazon.com is scheduled to report its second-quarter financial statement Thursday after the closing bell. The company is expected to report that earnings fell to 31 cents per share, down from 37 cents per share in the same quarter a year ago, according to a consensus estimate compiled by Thomson Reuters.

Shares of Amazon.com ended the regular trading session down 22 cents to $88.79 per share. In after hours trade, shares were up less than 1%. To top of page

Features
They're hiring!These Fortune 100 employers have at least 350 openings each. What are they looking for in a new hire? More
If the Fortune 500 were a country...It would be the world's second-biggest economy. See how big companies' sales stack up against GDP over the past decade. More
Sponsored By:
More Galleries
8 must-have travel apps Whether you've got wanderlust or an airline grievance, here are some apps to pack onto your phone. More
Hot stocks: 10 record breaking companies The S&P 500 is trading at all-time highs, and many well-known businesses are leading the charge. Time to buy or sell? More
My biggest retirement mistake Five CNNMoney readers share stories about saving that you can learn from. What they would do differently if they had another chance. More
Worry about the hackers you don't know 
Crime syndicates and government organizations pose a much greater cyber threat than renegade hacker groups like Anonymous. Play
GE CEO: Bringing jobs back to the U.S. 
Jeff Immelt says the U.S. is a cost competitive market for advanced manufacturing and that GE is bringing jobs back from Mexico. Play
Hamster wheel and wedgie-powered transit 
Red Bull Creation challenges hackers and engineers to invent new modes of transportation. Play

Market indexes are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer Morningstar: © 2014 Morningstar, Inc. All Rights Reserved. Disclaimer The Dow Jones IndexesSM are proprietary to and distributed by Dow Jones & Company, Inc. and have been licensed for use. All content of the Dow Jones IndexesSM © 2014 is proprietary to Dow Jones & Company, Inc. Chicago Mercantile Association. The market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. FactSet Research Systems Inc. 2014. All rights reserved. Most stock quote data provided by BATS.