Amazon Is Buying Whole Foods For $13.7 Billion And The Internet Has SO, SO Many Kale Jokes
Huge, huge, HUGE! news from the business world today. Like a story arc out of a South Park season, Amazon — the biggest retailer in the world — announced that it’s ready to buy Whole Foods, every yuppie’s favorite overpriced, all-organic grocery store. Amazon is acquiring the company for $42 a share in cash at a valuation of $13.7 billion, giving billionaire Jeff Bezos another massive retailer in his empire alongside the Washington Post, Zappos, and Twitch. Get ready for delivery kale via drone coming to your local Whole Foods. via Bloomberg:
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” Amazon Chief Executive Officer Jeff Bezos said in a statement.
The takeover is slated to be completed in the second half of the year, with Whole Foods’ headquarters remaining in Austin, Texas.
Amazon previously contemplated a takeover of Whole Foods last fall, but it didn’t pursue a deal, a person with knowledge of the situation have said. The e-commerce company revisited the idea after Jana stepped in.
“Amazon clearly wants to be in grocery, clearly believes a physical presence gives them an advantage,” said Michael Pachter, an analyst at Wedbush Securities Inc. “I assume the physical presence gives them the ability to distribute other products more locally. So theoretically you could get 5-minute delivery.”
The announcement of the acquisition caused a social media tsunami. The move feels like one step closer to corporate singularity, with a huge tech company acquiring such a massive national grocery store chain.