Zappos-Amazon Acquisition
Amazon’s Acquisition of Zappos
Acquisition regarding Amazon and Zappos
Companies that want to be among the elite competitors in their particular fields have to be able to adapt and evolve in an always changing market place. In order to do so many large companies initiate mergers or acquisitions with smaller or similarly sized companies. They believe they can leverage and collaborate with each other in order to create more company value. The main difference between a merger and an acquisition is a merger is a situation in which two firms agree to unite as one single company rather than remain two separately operating firms owned by one company. The firms are usually the same size, and both companies’ stocks are surrendered creating new company stock issued in its’ place. An acquisition is when one company completely buys out the selling companies stock and makes itself the new owner of the company. Legally the selling company still exists as an independent legal entity, but overall control is in the hands of the parent company. In July 2009 CEO of Zappos, Tony Hsieht made the announcement of Amazon’s acquiring of Zappos. In a lengthy e-mail Tony eloquently explains the future of Zappos and what will take place in the near future at Zappos. Throughout Amazon’s reign as online shopping powerhouse, they have been consistent in one of the most important aspects--growing and developing as a long-term contender in the online shopping world. Amazon has adapted and involved in the always changing markets by expanding market share through acquisitions. In 1998 Amazon expanded itself into new markets with three key acquisitions. Two of the acquired companies, Bookpages and Telebook, were bought to expand Amazon’s market share into Europe; and the third acquisition, The Internet Movie Database (IMD), was bought to expand Amazon into a new developing market of online video sales. Amazon has always stressed customer service and customer ease as a main objective
Acquisition regarding Amazon and Zappos
Companies that want to be among the elite competitors in their particular fields have to be able to adapt and evolve in an always changing market place. In order to do so many large companies initiate mergers or acquisitions with smaller or similarly sized companies. They believe they can leverage and collaborate with each other in order to create more company value. The main difference between a merger and an acquisition is a merger is a situation in which two firms agree to unite as one single company rather than remain two separately operating firms owned by one company. The firms are usually the same size, and both companies’ stocks are surrendered creating new company stock issued in its’ place. An acquisition is when one company completely buys out the selling companies stock and makes itself the new owner of the company. Legally the selling company still exists as an independent legal entity, but overall control is in the hands of the parent company. In July 2009 CEO of Zappos, Tony Hsieht made the announcement of Amazon’s acquiring of Zappos. In a lengthy e-mail Tony eloquently explains the future of Zappos and what will take place in the near future at Zappos. Throughout Amazon’s reign as online shopping powerhouse, they have been consistent in one of the most important aspects--growing and developing as a long-term contender in the online shopping world. Amazon has adapted and involved in the always changing markets by expanding market share through acquisitions. In 1998 Amazon expanded itself into new markets with three key acquisitions. Two of the acquired companies, Bookpages and Telebook, were bought to expand Amazon’s market share into Europe; and the third acquisition, The Internet Movie Database (IMD), was bought to expand Amazon into a new developing market of online video sales. Amazon has always stressed customer service and customer ease as a main objective