Zappos.com Steps Into Line With Amazon

July 22, 2009: Online retailer Zappos.com, whose site includes inventory from Nike, Reebok, adidas, Converse and other sports-related brands, has been acquired by Amazon.com.

Amazon said it would acquire all of the outstanding shares and assume all outstanding options and warrants of Zappos in exchange for approximately 10 million shares of Amazon common stock, equal to approximately $807 million based on the average closing price for the 45 trading days ending July 17, 2009. In addition, Amazon will provide Zappos employees with $40 million in cash and restricted stock units. The deal is expected to close this fall.

Zappos' management team "will remain intact" and continue to operate out of its headquarters in Las Vegas, according to Amazon. Founded in 1999, Zappos.com grossed more than $800 million in sales in 2008 and is projecting more than $1 billion in sales in 2008 when finals figures are disclosed, according to the company.

Zappos is a customer focused company,” Jeff Bezos, founder and CEO of Amazon.com, said in a statement. “We see great opportunities for both companies to learn from each other and create even better experiences for our customers.”

According to Tony Hsieh, CEO of Zappos, “We are joining forces with Amazon because there is a huge opportunity to utilize each other’s strengths and move even faster towards our vision of delivering happiness to customers, employees and vendors. 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.” Back to Home Page