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Source: Pixabay

Amazon Purchases Whole Foods In A 'Game Changer' Move In Grocery Retail

By Brian Spaen

Amazon has dominated many aspects of the retail market, but the grocery industry has always been limited for obvious reasons. No speed of shipping can bring fresh food and dairy products right to people’s doors. However, the online giant has made incredible waves on Friday by announcing the purchase of organic grocery store, Whole Foods Market.

The deal is worth $13.7 billion and it boosts Whole Foods’ value to $42 per share. That’s a 27 percent increase on where the company’s stock was at the end of the day on Thursday. CNBC’s on-air stocks editor, Bob Pisani, says that Amazon essentially got the grocery store for free as their “market cap has appreciated by about $15.6 billion today.” However, the online retail giant will also be acquiring Whole Foods’ debt which is around $1.1 billion.

This becomes Amazon’s biggest acquisition by a landslide. Everything else doesn’t even reach the billion dollar plateau. Twitch Interactive, a website that gives people the ability to stream video games they play and has been one of the biggest platforms for the growth of esports, was Amazon’s next-biggest acquisition at $970 million back in 2014. The online retail giant has also bought other famous entities like Zappos.com, Alexa Internet, and Audible.