as the buzz goes around the corner. Amazon is ready to push the food market Amazon said on Friday it has agreed to buy Whole Foods in a deal valued at $13.7 billion, as the e-commerce juggernaut makes its boldest push yet into the grocery business.
Under the terms of the deal, Amazon would pay $42 per share in cash for the company, which represents a 27% premium to Thursday’s closing price.
The organic grocer, which was founded in 1978 and now has more than 460 stores, has come under pressure from investors lately due to sliding sales. It has struggled to attract shoppers as giants like Kroger and Wal-Mart expand their healthy grocery offerings. Its stock has lost a fifth of its value in the last three years.
Shares of Amazon rose 3% on Friday morning, while shares of Whole Foods surged 27%. Grocery companies were reeling on the news that the fierce, low-cost competitor was getting into the space, with stocks like Kroger, Sprouts and Wal-Mart dropping sharply.