Amazon buys Zappos

From Yenra

On July 22, 2009, Amazon announced that it will acquire Zappos, a seller of online apparel and footwear.

Amazon will 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 acquisition is expected to close during the fall of 2009.

Following the acquisition, the Zappos management team will remain intact and Zappos will operate its brand, customer experience and unique culture of service independently with headquarters in Las Vegas.

Amazon CEO Jeff Bezos praised the customer focus of Zappos.

Zappos CEO Tony Hsieh promised "we will continue to build the Zappos brand and culture in our own unique way."

His letter to employees explains how he feels: http://blogs.zappos.com/ceoletter