(Bloomberg / 6-16-17) -- Amazon.com Inc. will acquire Whole Foods Market Inc. in a $13.7 billion deal, marking the biggest transaction ever for the e-commerce giant as it pushes deeper into groceries.
Amazon will pay $42 a share in cash for the organic-food chain, the companies said on Friday. John Mackey, Whole Foods’ outspoken co-founder and chief executive officer, will continue to run the business.
Amazon’s biggest acquisition to date came in 2014, when it agreed to buy video-game service Twitch Interactive Inc. for $970 million in cash, according to data compiled by Bloomberg. The Seattle-based company had about $21.5 billion of cash and equivalents at the end of March, the data show.
“Millions of people love Whole Foods Market because they offer the best natural and organic foods, and they make it fun to eat healthy,” Amazon CEO Jeff Bezos said in a statement.
Just yesterday (Thursday) The Motley Fool reported Whole Foods stock had been "slammed" and that "activist investors" Jana Partners (Mackey called them Greedy Bastards) had been pushing for a sale of the company. Shares closed at $33. Company sold at $42.
According to Investopedia, "Jana Partners is an activist hedge fund founded by Barry Rosenstein in 2001. The fund specializes in event-driven investing by applying a fundamental analysis to identify undervalued companies in the market. Based in New York, the fund manages around $10 billion as of 2015."
Well, apparently no one got hurt except Mackey's ego (screw him anyway) and I guess it'll be business as usual at Whole Foods, albeit with probable online ordering and delivery service via Amazon.
Rosenstein was worth $1.3 billion yesterday and a lot more today.