Press release:

Amazon (NASDAQ:AMZN) and Whole Foods Market, Inc. (NASDAQ:WFM) today announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.

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

“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,” said John Mackey, Whole Foods Market co-founder and CEO.

Whole Foods Market will continue to operate stores under the Whole Foods Market brand and source from trusted vendors and partners around the world. John Mackey will remain as CEO of Whole Foods Market and Whole Foods Market’s headquarters will stay in Austin, Texas.

Completion of the transaction is subject to approval by Whole Foods Market’s shareholders, regulatory approvals and other customary closing conditions. The parties expect to close the transaction during the second half of 2017.

Few things:

  1. Amazon has already been tinkering with futuristic stores, like grocery stores where you just get what you want and walk out (your Amazon account is automatically charged) and bookstores that combine the best of the online shopping experience in the retail environment. Acquiring a chain of popular grocery stores will presumably enable them to roll out their simple checkout experience to a much wider audience.
  2. Same-day, same-hour, perhaps drone delivery is a real thing and will become more prevalent as Amazon expands its own logistics services. They already have a grocery delivery service in some areas. If I were Peapod or Fresh Direct I’d be terrified right now.
  3. Jeff Bezos and Amazon now control the largest retailer on the planet, one of the most powerful media outlets, and the most popular grocery store chain. They are better positioned than any company, including Apple, Google and Tesla, to take over the world.