Amazon Announces Whole Foods Purchase
A big move in the grocery market and a big threat to WalMart, Amazon will buy Whole Foods. The organic grocery has 460 locations, giving Amazon a strong launching pad to deepen its food delivery plans.
The company's press release states that John Mackey, co-founder and CEO, will continue in his role. A quote from Mackey emphasizes shareholder value and benefits to customers.
Other supermarket chains "put on a strong face," according to a NYT article. A spokesperson for Kroger sent an email: "As we've done in the past, we will evolve our business to deliver what our customers want and need today and into the future." But shares of Walmart, Target, Kroger and Costco all fell on the news.
Press Release
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| Amazon to Acquire Whole Foods Market |
| Whole Foods Market ranked #28 and Amazon ranked #2 on Fortune's 2017 list of World's Most Admired Companies SEATTLE & AUSTIN, Texas--(BUSINESS WIRE)--Jun. 16, 2017-- Amazon (NASDAQ:AMZN) and Whole Foods Market, Inc. (NASDAQ:WFM) today announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market's net debt. "Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy," said Jeff Bezos, Amazon founder and CEO. "Whole Foods Market has been satisfying, delighting and nourishing customers for nearly four decades – they're doing an amazing job and we want that to continue." "This partnership presents an opportunity to maximize value for Whole Foods Market's shareholders, while at the same time extending our mission and bringing the highest quality, experience, convenience and innovation to our customers," said John Mackey, Whole Foods Market co-founder and CEO. Whole Foods Market will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world. John Mackey will remain as CEO of Whole Foods Market and Whole Foods Market's headquarters will stay in Austin, Texas. Completion of the transaction is subject to approval by Whole Foods Market's shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017. |
Discussion:
- Analyze the writing style, organization, and word choice in the press release. Who is the audience, and what are the objectives?
- It's short: should the companies say more?
- What's your view of Kroger's reaction? What else, if anything, should the company say in response to the news?