Amazon to buy Whole Foods in $13.7 billion all-cash deal
Amazon will acquire Whole Foods Market in a $13.7 billion all-cash deal, marking the biggest transaction ever for the e-commerce giant. Whole Foods’ John Mackey will remain CEO of the grocery chain, and the stores will continue to operate under Whole Foods. Before this, Amazon’s biggest acquisition was in 2014, when it bought video-game service Twitch Interactive for $970 million.
The acquisition, announced Friday, is a reflection of both the sheer magnitude of the grocery business — about $800 billion in annual spending in the United States — and a desire to turn Amazon into a more frequent shopping habit by becoming a bigger player in food and beverages. After almost a decade selling groceries online, Amazon has failed to make a major dent on its own as consumers have shown a stubborn urge to buy items like fruits, vegetables and meat in person.