Now Playing
Y100 FM

Posted: June 16, 2017

Amazon to buy Whole Foods for $13.7 billion

By Natalie Dreier, Cox Media Group National Content Desk

Is Amazon getting deeper into the grocery business?

>> Read more trending news 

Multiple media outlets are reporting that the online retail giant has announced that it will be buying Whole Foods.

Amazon will pay $42 per share.

The total will be $13.7 billion in what is being touted as the largest deal for Amazon, Bloomberg reported.

“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy. 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,” Amazon founder and CEO, Jeff Bezos said in a statement.

Amazon had looked at the grocer last year, but initially decided not to make an offer, The Austin American-Statesman reported.

Founded in Austin in 1978, Whole Foods has 465 stores worldwide and 87,000 employees.

According to Fortune’s annual study, Amazon is the second highest ranked most admired companies. Whole Foods comes in at 28.


Justin Sullivan/Getty Images

Amazon to buy Whole Foods

Justin Sullivan/Getty Images

Amazon to buy Whole Foods

SAN RAFAEL, CA - FEBRUARY 17: A sign is posted in front of a Whole Foods store February 17, 2010 in San Rafael, California.
Whole Foods faced with possible takeover bid as shares jump

Spencer Platt/Getty Images

Whole Foods faced with possible takeover bid as shares jump

Supermarket chain Albertsons is exploring a possible takeover of Austin-based Whole Foods Market, the Financial Times is reporting, citing unnamed sources.

Albertsons, which operates about 2,200 stores, is controlled by buyout group Cerberus Capital Management. Cerberus has had preliminary talks with bankers about making a bid for Whole Foods, the Financial Times reported, citing a person close to the buyout firm. No formal bid has yet been made, according to two people briefed on the situation.

>> Read more trending news

Whole Foods’ shares jumped more than 4 percent in afternoon trading following the Financial Times’ report.

The reported interest from Albertsons comes about two weeks after investment group Jana Partners revealed it had built a 9 percent stake in Whole Foods and raised the possibility of either a management shakeup or even a sale for the company. Whole Foods has a current market value of about $11 billion.

Also, online retail giant Amazon last year considered making a takeover bid for Austin-based Whole Foods Market Inc., but decided not to pursue a deal, Bloomberg news service reported last week.

>> Related: Lawsuit claims Whole Foods managers fired for whistle-blowing

A number of factors, including intensified competition, have hit the Austin-based Whole Foods hard, leading to struggles in recent quarters. A March report from a Barclays analyst, for instance, suggested Whole Foods had lost 14 million customers since 2015 - many of them to Kroger, which has stepped up its organic offerings.

>> Related: Amazon considered bid to buy Whole Foods

Founded in Austin in 1978, Whole Foods has 462 stores worldwide and 87,000 employees. In its fiscal first quarter, Whole Foods recorded record sales of $4.9 billion, but saw its net income decline and also lowered its earnings projections for the year.



There are no comments yet. Be the first to post your thoughts. or Register.



@Y100SanAntonio Instagram


Amazon Alexa

Enable our Skill today to listen live at home on your Alexa Devices!