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Per AAS: Amazon buying Whole Foods in $13.7 billion deal

6,548 Views | 64 Replies | Last: 6 yr ago by SlackerAg
thirty-two
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AG
Discuss?
thirty-two
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Initial rumors were that Kroger was in the hunt... but Amazon? Didn't see this coming...
FaceMask
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And of course I sold WFM at $29 after holding it for a year.
badharambe
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AG
Sounds like a way to expand and mirror staples business model, use the stores as a warehouses for local shipping needs?
DRE06
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Costco down 8% with the AMZN news. Been looking for a buying opportunity. I like Costco.
thirty-two
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DRE06 said:

I like Costco.
So does my wife.
tysker
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AMZN buying a high-end grocery retailer which can also act as a defacto distribution center for Fresh services. Also they will be able to deliver fresh made foods using a grubhub/seamless web/uber eats model.
ac04
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absolutely love it.
wheelskjm
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*****
I gotta reevaluate whether I want to continue operating a SHOS store... got amazon right down the street from us now. I hope amazon really screws this up.

I want to use the drone tech, I dont want to compete against it. I want to use their "checkout-less" shopping platform, I don't want to compete against it.

Edit: nvm that's a natural grocers, not whole foods. Phew.
Al Bula
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Amazon just bought a LOT highly-desirable commercial real estate they can use as warehouses.

And where will all the SJW hoop wearing tards in knitted beanies work now? Will they transition from grocery clerks to warehouse laborers? Or will they compete with Freebirds employees for the coveted role of burrito artisan?
FarmerJohn
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I remember a professor at MIT gushing about how innovative Steve Jobs and Reed Hastings were and how we should hope to emulate them. Then he asked who else we could think of who were as innovative. Sticking to tech, I offered Bezos. This guy just laughed it off saying that Amazon wasn't innovative, they were just a distributor. I didn't argue the point because he didn't seem interested in listening to someone else's opinion and I learned that just because someone is smart, it doesn't mean they have any clue what they are talking about.
FarmerJohn
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Quote:

And where will all the SJW hoop wearing tards in knitted beanies work now? Will they transition from grocery clerks to warehouse laborers?
They need some place where they can utilize their Kroger skill set and work ethic, but add in an over-inflated sense of entitlement. Plus they have to feel like they are "making a difference". That narrows it down to them pretty much being government bureaucrats.
tysker
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Well its telling that AMZN is up over 3% right now on the news (as the acquirer!) and all other potential competitors are down on the day. Even the lower level grocers.

Besides delivery services, in the future you can see the some Whole Foods stores having small book sections, a small video rental a la redbox, and even a 3D scanner used for sizing your perfectly tailored clothes.

Its like AMZN just anthropomorphized a college graduation speech buy buying a huge bag of opportunities and infinite possibilities.
AgBank
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hmm... what is the consideration? I haven't seen it posted in the few articles I read.
AgCPA95
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AgBank said:

hmm... what is the consideration? I haven't seen it posted in the few articles I read.
I've seen a few mention it's an all cash deal.
GT_Aggie2015
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All cash it seems.

http://www.kvue.com/news/nation-world/amazon-is-buying-whole-foods-in-137b-deal/449591415
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AgBank
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Not that amazon trades on earnings, but this will be an accretive transaction.



Issuing debt to purchase WFM obfuscates Amazon's view of its own valuation. It would have been more telling if they issued shares as part of the consideration.
Cooter00
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RPM said:

Amazon just bought a LOT highly-desirable commercial real estate they can use as warehouses.


You mean leased.
This makes the actual owners of the real estate feel a lot better though.
MrJonMan
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Any value in buying Kroger stock? Seems to have taken a hit from this
khkman22
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MrJonMan said:

Any value in buying Kroger stock? Seems to have taken a hit from this
A bigger hit from their revised guidance going forward, but down 30% in two days makes it somewhat attractive. Debating if I should pick some up, but haven't had a chance to do any research yet.
Phat32
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MrJonMan
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khkman22 said:

MrJonMan said:

Any value in buying Kroger stock? Seems to have taken a hit from this
A bigger hit from their revised guidance going forward, but down 30% in two days makes it somewhat attractive. Debating if I should pick some up, but haven't had a chance to do any research yet.


Same situation, simply caught my eye because of the 30% drop
TriAg2010
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tysker said:

Its like AMZN just anthropomorphized a college graduation speech buy buying a huge bag of opportunities and infinite possibilities.

I'm not trying to be a contrarian just for the sake of being a contrarian, but I think we should state that one of those infinite possibilities is failure. Amazon could blow this. I've just seen very few people actually say anything critical about this deal, which starts to raise the groupthink alarm bell for me. Something about this deal makes me think in 10 years we could view it as another AOL-TimeWarner "WTF were they thinking?" situation.
YouBet
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Amazon may end up being the first city-state like corporation you always read about in sci-fi novels. They will have their own standing army and be above the nation's laws.
Zemira
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I'm just glad Google and Amazon aren't merging.

That would be end of the world domination by a corporation.
Phat32
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YouBet said:

Amazon may end up being the first city-state like corporation you always read about in sci-fi novels. They will have their own standing army and be above the nation's laws.


But at least they'll have free 2 day shipping.
SlackerAg
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With so much cash held overseas, Amazon could buy Aldi to expand into Europe.
WoMD
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rasher said:

YouBet said:

Amazon may end up being the first city-state like corporation you always read about in sci-fi novels. They will have their own standing army and be above the nation's laws.


But at least they'll have free 2 day shipping.

That often ends up being 3 or 4 days.
62strat
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rasher said:

YouBet said:

Amazon may end up being the first city-state like corporation you always read about in sci-fi novels. They will have their own standing army and be above the nation's laws.


But at least they'll have free 2 day shipping.

Ahem... free same day shipping.
3 hours to my office to be exact.
TXAGFAN
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Doesn't anyone think the cultures of these two companies are extremely different? For example, Amazon IMO competes on cost and maximizes its supply chain while Whole Foods seems to be completely ok and even seek out more expensive local options.

I don't get it and that's ok. Part of me thinks this is more of a play against instacart than anything.
YouBet
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Yes, the cultures are wholly different. WF staff are in for a rude awakening. Bezos will attempt to automate and cut costs as much as possible. Considering the generous compensation packages WF employees receive relative to their industry peers he will look at that first.

He will automate checkout and anyone left will be repurposed to deliver in-store experience or maybe pick and pack for delivery drivers.
oldarmy1
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Blue Apron had made a major niche with millineals and has an IPO coming. Wonder how much this impacts the model.
themissinglink
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TXAGFAN said:

Doesn't anyone think the cultures of these two companies are extremely different? For example, Amazon IMO competes on cost and maximizes its supply chain while Whole Foods seems to be completely ok and even seek out more expensive local options.

I don't get it and that's ok. Part of me thinks this is more of a play against instacart than anything.
I'm with you. I understand then buying a traditional grocery store chain like Kroger/HEB, but whole foods has a completely different model.
aggiedata
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I see Blue Apron being acquired or facing direct competition from Amzn or WalMart in the not so distant future.
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