Never underestimate the dollar power of shoes and handbags. Amazon, in a move to expand diversity in its product line, last July moved to acquire Zappos , a purveyor of shoes, bags and clothing. Now that the deal is finally closing , and Zappos’s stock has risen on the news of the buyout, Amazon has agreed to make the purchase for $1.2 billion, up from the initial stock price-based estimate of $928 million.
Zappos remains intact after the deal--a wholly owned subsidiary of Amazon, with headquarters in Las Vegas. No changes in Zappos’s management team are expected.
Image Credit: Amazon, Zappos