Amazon’s Zappos Purchase Finalized For $1.2b

mike lewis

• November 03 2009
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Tony Hsieh and his team at Zappos.com definitely wound up on the treat side of things on Halloween, finalizing the selling price of their company to Amazon for $1.2 billion based on Amazon’s closing stock price on Friday, October 30.

Amazon’s stock has skyrocketed in value since news of the Zappos deal, which was for 10 million shares of Amazon stock, went through causing the effective selling price to jump nearly $300 million.

In a public letter, Zappos CEO Tony Hsieh says:

We’ve been spending the past few months obtaining all the proper government approvals, and I’m happy to say that we officially closed the deal at the split second between Halloween (10/31/09) and All Saints’ Day (11/1/09). From a practical point of view, we’ve switched out our previous board of directors with a new management committee that is composed of people from Zappos as well as Amazon.

Our investors and other shareholders exchanged their Zappos.com shares for approximately 10 million Amazon.com shares. Given the closing price on Friday, 10/30/09, for Amazon stock, those shares were valued at approximately $1.2 billion at the time of close.

The Zappos management team will remain unchanged going forward.