Amazon buys online shoe store Zappos for $807m

Dylan Bushell-Embling
23 Jul 2009

Amazon will acquire online shoe retailer for $807 million worth of stock, in what is the largest acquisition in the company's history.

In addition to trading 10 million shares for the company, Amazon will give Zappos employees $40 million in cash and stock options.

It is one of a series of deals in vertical retail segments by the online e-commerce giant. Two weeks ago it launched Amazon Wireless, to sell mobile phones and services, and it also Javari, a Japanese online shoe store, and a, which reviews digital cameras.

Zappos will maintain its management team and continue to operate as an independent unit once the merger is complete, Amazon said.

"Zappos also has a totally unique culture," Amazon founder and CEO Jeff Bezos said in a video presentation. "I've seen a lot of companies, and I've never seen a company with a culture like Zappos's. That culture and the Zappos brand are huge assets that"&brkbar; I want to see continue."

The shoe retailer received 4.5 million visitors in June, according to the New York Times, and had sales of over a billion dollars last year, the Las Vegas Sun said.

Amazon stock on the Nasdaq rose 1% in after-hours trading to $89.70.

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