Amazon snaps up deal-a-day site Woot

woot_monkey.top.jpgGeek gadget shopping site Woot had its plush spokesmonkey announce the site's acquisition by Amazon. By Annalyn Censky, staff reporter


NEW YORK (CNNMoney.com) -- E-commerce behemoth Amazon is snapping up shopping site Woot, a cult favorite of gadget geeks.

Dallas-based Woot announced the deal on its company blog Wednesday in typically irreverent style, with a self-deprecating letter from chief executive Matt Rutledge and a video of a dancing and rapping plush monkey.

"We used to be a little fly-by-night, but son, starting today, we're a big-time site!" the simian mascot raps. The monkey did not disclose the deal's financial terms.

Woot was a pioneer in the "social shopping" space now populated by Groupon, Gilt Groupe, LivingSocial and other startups. Launched in 2004, the site initially featured just one consumer electronics product each day, offered at a steep discount and available in limited quantities. The site's featured deal on Wednesday was an iPod Nano for $99.99, or about $50 off what customers would pay in Apple stores. The same device was priced at $122.54 on Amazon's site.

The daily deal format proved so popular that Woot launched offshoot sites focused on wine, toys and t-shirts.

Seattle-based Amazon (AMZN, Fortune 500) said it expects the acquisition to close in the third quarter, after which Woot will continue to be managed independently from its current Texas headquarters.

"Amazon clearly knows what they're doing in a lot of areas, so we're geeked about the opportunities to tap into that knowledge and those resources, especially on the technology side," Rutledge said in his letter to employees. "This is about making the Woot brand, culture, and business even stronger than it is today, and we expect that any changes will be for the better or we wouldn't bother with this endless paperwork." To top of page

Frontline troops push for solar energy
The U.S. Marines are testing renewable energy technologies like solar to reduce costs and casualties associated with fossil fuels. Play
25 Best Places to find rich singles
Looking for Mr. or Ms. Moneybags? Hunt down the perfect mate in these wealthy cities, which are brimming with unattached professionals. More
Fun festivals: Twins to mustard to pirates!
You'll see double in Twinsburg, Ohio, and Ketchup lovers should beware in Middleton, WI. Here's some of the best and strangest town festivals. Play
Index Last Change % Change
Dow 17,098.45 18.88 0.11%
Nasdaq 4,580.27 22.58 0.50%
S&P 500 2,003.37 6.63 0.33%
Treasuries 2.34 0.01 0.39%
Data as of 12:49pm ET
Company Price Change % Change
Bank of America Corp... 16.09 0.08 0.50%
Apple Inc 102.50 0.25 0.24%
Intel Corp 34.92 0.27 0.78%
Facebook Inc 74.82 0.96 1.31%
General Electric Co 25.98 -0.03 -0.12%
Data as of Aug 29

Sections

The deal would value Vice at $2.5 billion. The online media company would also create content for the cable network, delivering a wider audience. More

Gas prices are falling to nearly $3 a gallon in some parts of South Carolina, and that will soon be common in much of the country. More

Netflix told the FCC that its speed on the Comcast network became so slow that customers began dropping their service. More

The Coolest Cooler is the most successful Kickstarter campaign in the site's history, raising $13.3 million from over 62,000 backers. More

Five CNNMoney readers share stories about saving that you can learn from: What they would do differently if they had another chance. More

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.