How to save on shoes, clothes and more from Amazon | The WSJ
The Wall St. Journal has acquired the exclusive online retailer, Amazon, for $3.6 billion in cash.
The deal also includes a stake in Amazon Payments.
Amazon is already the world’s largest e-commerce company, with more than 10 billion items sold.
The company sells products on nearly 2,000 different platforms including Amazon, Apple, Walmart and Best Buy.
Amazon has struggled in recent years as the number of customers on its platform has dropped and its online catalog has fallen off a cliff.
It has struggled to lure customers with its free shipping offer, and the company has struggled with increasing competition from online retailers like Wal-Mart.
The acquisition is expected to provide Amazon with an added $2 billion in annual revenue.
The Wall, in a statement, said Amazon’s growth has accelerated as more consumers and businesses choose to buy from its online store, which now includes more than 3,000 physical locations in more than 200 countries.
Amazon said it expects the deal will close by the end of 2019.
Walmart shares closed down about 2.2% in midday trading.
“We’re excited to join forces with Amazon and will continue to invest in our team, our business and our customers,” said Walmart Chief Executive Doug McMillon.
The transaction, which is valued at $2.2 billion, is subject to customary closing conditions, which are expected to be approved by the stock market.
While Amazon has been struggling in recent quarters, the company still has more than 7 billion online customers and is expected spend about $7 billion in the next 12 months.
More than half of all US households are paying for the goods they buy online, according to a recent study by the consulting firm IDC.
The median value of a home includes everything from appliances to electronics.
“Amazon has the capability to transform how Americans shop and shop online, and its technology and business model will accelerate its momentum in the marketplace,” said Amazon chief executive officer Jeff Bezos in a written statement.
Jeff Bezos is a major investor in Amazon, and Bezos’ son and senior adviser, Bob, will lead the company’s board.
Shares of Amazon closed down 1.3% at $26.35 on the New York Stock Exchange.
This story was updated at 6:25 p.m. ET.
