Amazon makes a statement with bid to buy Whole Foods for $13.7B
Amazon appears poised to change the grocery business in a big way as the e-commerce giant Friday announced plans to buy Whole Foods Market in a deal valued at $13.7 billion, according to multiple media reports.
For weeks, Whole Foods had been under pressure from investors to find a buyer because in their eyes, the high-end grocery chain wasn't performing well in the market.
Whole Foods CEO John Mackey recently went as far as to call those investors calling for a sale "greedy bastards."
"They're putting a bunch of propaganda out there, trying to destroy my reputation and the reputation of Whole Foods, because it's in their self-interest to do so," Mackey said in an interview with TexasMonthly.
Mackey will remain CEO after the deal closes with Amazon, and Whole Foods will continue to operate under that brand.
"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," Mackey said in a statement.
The deal is expected to close in the second half of this year.
Amazon saw its stock rise 2.6 percent Friday morning while Whole Foods shares jumped 28 percent after the announcement was made.
The announcement made a major dent for other grocers and retailers as Costco, Kroger, Sprouts Farmers, Supervalu, Target, Walmart and United Natural Foods all saw their stock prices drop Friday morning.