I can’t say that I saw this one coming, but that doesn’t mean that I don’t like it. In fact, I like this deal a lot and as an investment I like Amazon. As a company, Amazon always follows solid business fundamentals and stays true to their core business, they are always looking for the value add and with this deal they just continue that trend. Amazon.com is expected to announce that it has agreed to acquire Quidsi, the parent company of websites like Diapers.com and Soap.com. The purchase price is rumored to be $540 million, though some reports are calling for an all-cash deal while others are predicting $500 million in cash and another $45 million in debt, with Quidsi’s co-founders agreeing to multi-year employment contracts with Amazon.
Reports have it that this isn’t Amazon’s first bid for the company and that another major player named Wal-Mart has also made an offer for the company. While most websites with names like this are really just placeholder sites, the result of people snapping up what they thought would be valuable domains back in the late 90s and just holding them, Diapers.com and Soap.com are very different. I mean the concept is brilliant and while I honestly had never heard of either until this story, I can definitely see myself using them both at some point in the future, probably Soap.com more right nowJ. As a company, Quidsi has figured out how to warehouse and ship everyday items quickly and at a profit which has created quite a devoted customer base. I mean if you had the option to use either one of these sites to buy commodity items, you really would be a fool not to. They sell at an excellent price the kinds of items that you will always need and can never have enough of and you don’t even have to go out to buy them. On the whole, I think that it actually may be a better value than even some wholesale clubs like BJ’s and Sam’s Club.
I know I am sounded kind of repetitive but I really like the moves Amazon has been making as of late, they tend to go under the radar but they have done an excellent job of turning themselves into much more than just a company that sells books. Amazon owns businesses in a lot of different sectors, of which I am very excited about their Amazon Web Services (AWS) business which I think is way ahead of its time and makes no one better positioned than Amazon to take advantage of the situation once the market finally catches up. At this point, who can name three companies that consistently make the kind of smart moves that Amazon does in the tech sector, that’s an easy one, nobody.
(Note: The author is not in any way affiliated with Amazon.com and does not own stock in the company.)