Feeds

Amazon acquires online shoe fetishist

'Zappos and Amazon sitting in a tree...'

Security for virtualized datacentres

Amazon today announced that it would acquire shoes, clothing, bags, and accessories etailer Zappos.com in a stock-swap deal that will total approximately $847m.

Although the deal is being widely reported as an acquisition, Zappos CEO Tony Hsieh doesn't see it exactly that way. In an extensive letter to his employees on the Zappos blog, Hsieh explained:

Over the next few days, you will probably read headlines that say "Amazon acquires Zappos" or "Zappos sells to Amazon". While those headlines are technically correct, they don't really properly convey the spirit of the transaction. (I personally would prefer the headline "Zappos and Amazon sitting in a tree...")

Translated into non-Zappos-speak, what Hsieh means is that Zappos, though wholly owned by Amazon, will continue as a separate, independent division, retaining its current management and employees, along with its current headquarters in Las Vegas, Nevada.

As Hsieh put it in a canned joint Amazon/Zappos statement, "We will continue to build the Zappos brand and culture in our own unique way."

In the same statement, head Amazonian Jeff Bezos said, "We see great opportunities for both companies to learn from each other and create even better experiences for our customers."

Bezos also taped a video for Hsieh to provide to Zappos employees who might be worried about being displaced or made irrelevant in the acquisition. In the video, Bezos mirrors Zappos.com's custom-centric culture, saying "When given the choice of obsessing over competitors or obsessing over customers, we always obsess over customers."

What Bezos will no longer be obsessing over is Amazon's own shoes-and-bags online marketplace, Endless.com, which it quietly launched in December 2006 and which now has been made redundant.

Under the terms of the agreement, Amazon will provide the 100-plus Zappos shareholders and investors with approximately 10 million shares of Amazon common stock worth about $807 million in exchange for their existing Zappos shares. Amazon will also provide Zappos employees with $40 million in cash and restricted stock units.

The acquisition is expected to close in the fall of this year. ®

New hybrid storage solutions

More from The Register

next story
Phones 4u slips into administration after EE cuts ties with Brit mobe retailer
More than 5,500 jobs could be axed if rescue mission fails
Apple CEO Tim Cook: TV is TERRIBLE and stuck in the 1970s
The iKing thinks telly is far too fiddly and ugly – basically, iTunes
Apple Pay is a tidy payday for Apple with 0.15% cut, sources say
Cupertino slurps 15 cents from every $100 purchase
Phones 4u website DIES as wounded mobe retailer struggles to stay above water
Founder blames 'ruthless network partners' for implosion
Huawei ditches new Windows Phone mobe plans, blames poor sales
Giganto mobe firm slams door shut on Microsoft. OH DEAR
Forget silly privacy worries - help biometrics firms make MILLIONS
Beancounter reckons dabs-scanning tech is the next big moneypit
Microsoft's Office Delve wants work to be more like being on Facebook
Office Graph, social features for Office 365 going public
prev story

Whitepapers

Providing a secure and efficient Helpdesk
A single remote control platform for user support is be key to providing an efficient helpdesk. Retain full control over the way in which screen and keystroke data is transmitted.
Top 5 reasons to deploy VMware with Tegile
Data demand and the rise of virtualization is challenging IT teams to deliver storage performance, scalability and capacity that can keep up, while maximizing efficiency.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
Secure remote control for conventional and virtual desktops
Balancing user privacy and privileged access, in accordance with compliance frameworks and legislation. Evaluating any potential remote control choice.