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Amazon Buys Rival Zappos for About $900M

By John Johnson,  Newser Staff

Posted Jul 22, 2009 7:47 PM CDT

(Newser) – If you can't beat 'em, buy 'em. Amazon is shelling out about $900 million in cash and stock to purchase rival online retailer Zappos, reports TechCrunch. Zappos specializes in shoes, and the investment—the biggest in Amazon's 14-year history—suggests Jeff Bezos is looking to shore up his company's less-than-stellar performance in the enormous online apparel category, notes the Wall Street Journal.

Amazon launched its own footwear site, Endless.com, a few years ago to go after Zappos, but it never quite took off. "They've been trying to do it for years with very little success," one analyst tells the Journal. Amazon will reportedly run Zappos as a separate entity, and it will operate under the same management. The deal is expected to close in the fall.

Jeff Bezos, CEO of Amazon.
Jeff Bezos, CEO of Amazon.   (AP Photo/Nati Harnik)
Amazon.com chairman and CEO Jeff Bezos.
Amazon.com chairman and CEO Jeff Bezos.   (AP Photo/Damian Dovarganes)
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COMMENTS
Showing 3 of 6 comments
armywife
Jul 23, 2009 12:52 PM CDT
hmm, perhaps this is why my zappos order is taking so long to be delivered....it's been almost 2 weeks! where are my rain boots?!
wwwonderer
Jul 23, 2009 6:01 AM CDT
Just Apple can survive off iPods and iTunes instead of Macs, maybe Amazon makes enough on apparel to not need as much on the books side. Just playing Devil's Advocate.
AClotfelter
Jul 23, 2009 4:59 AM CDT
Damnit, Jeff! How does this help you lower the price of the Kindle??

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