Zappos announced today in an email to all employees that they’re being acquired by Amazon for about 10 million shares of Amazon shares equal to approximately $807 million. Amazon will also provide Zappos employees with $40 million in cash and restricted shares.
Zappos is the leading US online retailer for shoes, and has a unique company culture where employees not only need qualifications for the job but also have to fit the company ethos of delivering happiness to customers.
In a video posted today on YouTube Jeff Bezos talks about his vision for Amazon and how Zappos is a perfect fit. The video appears to be intended to reassure Zappos employees that their jobs are safe and the company will continue as normal.
Zappos will continue to trade under the Zappos brand and be run as an independent entity, but will tap into Amazon’s knowledge, expertise, and resources, especially on the technology side.
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Comment from Techcrunch:
https://www.techcrunch.com/2009/07/22/guess-who-lost-big-on-the-zappos-deal/
@Dan – Ouch!
Does this mean eBay will keep even more secret the Diamond Sellers they bring in?
https://blog.auctionbytes.com/cgi-bin/blog/blog.pl?/pl/2009/6/1246409175.html
Zappos Abandons Test of eBay Retail Channel
30 June 2009
To prevent Amazon from acquiring them?
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“You know how long it took the “Chronicle” to get that staff together? Twenty years.” Mr. Bernstein
“I know” Charles Kane
.. after which Mr. Kane hires the competition’s staff ..
“3. Zappos is known for its legendary customer service. Amazon thinks this is an asset in the future.”
As ebay is in full on copy Amazon mode does this mean ebay may improve their customer service?
what am I saying?, I could probably get locked up in a nice soft cell just for thinking things like that!
Maybe Amazon is just looking for a nice pair of slippers?
I think Jimbo’s got it. Along Victor Kiam lines – Jeff liked the slippers so much, he bought the company.
Does this mean that Zappos customer service will fall? Surely Amazon customer service won’t want to improve, so it makes sense to lower the standard of service that zappos will provide 🙄