(src : TechCrunch.com)
Just as the Halloween night ended and All Saints day started Amazon finally owned up Zappos in a $1.2 billion buy out. The acquisition process, that was initiated in July and hovered around a deal amount of $928 million for past few months, finally drew curtains.With a positive stock market these days Amazon had to pay Friday’s closing price of $117.4 a share totaling to 1.2 billion dollars. For our readers who are not familiar with Zappos.com, its a popular online clothing and footwear vendor.
Quoting Zappos.com CEO Tony Hsieh :
We’ve been spending the past few months obtaining all the proper government approvals, and I’m happy to say that we officially closed the deal at the split second between Halloween (10/31/09) and All Saints’ Day (11/1/09). From a practical point of view, we’ve switched out our previous board of directors with a new management committee that is composed of people from Zappos as well as Amazon.
Our investors and other shareholders exchanged their Zappos.com shares for approximately 10 million Amazon.com shares. Given the closing price on Friday, 10/30/09, for Amazon stock, those shares were valued at approximately $1.2 billion at the time of close.
As per the deal the Zappos management will remain intact and deliver form their Las Vegas headquarters. It will now be a wholly owned subsidiary of Amazon.com.
