In Blockbuster Deal, Amazon Acquires Austin-Based Whole Foods

The online retailer gains 460 brick-and-mortar stores.

By Alain StephensJune 16, 2017 1:39 pm|

In the words of CNBC’s Jim Cramer, “I can’t remember the last time an entire industry changed on one deal on a sleepy Friday morning.” Amazon.com announced Friday that it will acquire Austin-based Whole Foods Market, in a deal valued at $13.7 billion. Assuming this deal goes through, Amazon will have more than 400 real-world stores in which to to sell groceries.

Will Anderson, digital editor for the Austin Business Journal, says Amazon has already made initial steps into the brick-and-mortar retail world, but the Whole Foods acquisition adds 460 stores to the company’s portfolio – locations that customers already know.

“People are used to walking down the street or driving down the street to get to Whole Foods, and that’s a big deal for Amazon,” Anderson says.

What you’ll hear in this segment:

– How being owned by Amazon could affect Whole Foods’ culture

– What the deal may mean for Austin as a business center

– What role behind-the-scenes drama with Whole Foods’ outspoken CEO played in the deal

 

Written by Shelly Brisbin.