Amazon to buy Diapers.com owner Quidsi for $500M

Nov 08, 2010

(AP) -- Expanding its online retail empire, Amazon.com Inc. said Monday it is buying Quidsi, the owner of Diapers.com and Soap.com, for $500 million in cash.

Amazon said Quidsi will continue to operate independently after the acquisition, which is expected to close in December.

Amazon plans assume about $45 million in debt and other obligations as part of the deal, which has been approved by Quidsi's shareholders.

Soap.com sells health, beauty and cleaning products online, while Diapers.com sells baby-care items, including food and maternity wear. And Quidsi recently launched BeautyBar.com, which sells higher-end skin care, makeup and other products online.

The deal "positions Amazon to dominate the baby category," said Cowen and Co. analyst Jim Friedland in a note to investors. Quidsi, he added, is expected to generate $300 million of revenue in 2010, up 67 percent year-over-year.

The acquisition of Quidsi "will help Amazon become a category killer in the baby segment," Friedland wrote. "In our view - and this is coming from a dad with a 9-week-old - Diapers.com has been beating Amazon at its own game in the nonapparel baby category."

Diapers.com usually has better selection, better stock levels and lower prices, he said. The acquisition thus eliminates a key rival, and "prevents online and offline rivals from buying the asset to compete more aggressively in the baby category," Friedland said.

Amazon, based in Seattle, bought popular online shoe retailer Zappos.com, for $850 million last year. Zappos also operates independently as a unit of Amazon.

Shares of Amazon slid $1.30 to $169.47 in morning trading.

Explore further: Viacom CEO's 2014 pay rises 19 percent to $44.3 million

not rated yet
add to favorites email to friend print save as pdf

Related Stories

Amazon purchasing BuyVIP online sales club

Oct 07, 2010

Amazon announced on Thursday it is acquiring BuyVIP.com, a private online sales club with more than six million members in Austria, Germany, Italy, the Netherlands, Poland, Portugal and Spain.

Amazon 2Q profit falls with Toys R Us settlement

Jul 23, 2009

(AP) -- Amazon.com Inc. said Thursday that its second-quarter earnings fell while sales rose, due to a $51 million payment to settle a long-standing dispute with former partner Toys R Us. The profit still beat Wall Street ...

Amazon 3Q profit jumps 16 percent, but costs rise

Oct 21, 2010

(AP) -- Amazon.com Inc. saw earnings grow in the third quarter as shoppers bought more goods and services, yet costs also rose because the company is having to build new centers to fulfill those orders. Shares ...

Recommended for you

Microsoft profit dips as revenue rises (Update)

15 hours ago

Microsoft on Monday reported that its quarterly profit dipped but revenue increased in a sign that it is adapting to lifestyles centered on mobile devices and cloud services.

IBM "flatly denies" report of mass layoffs

20 hours ago

Calling it "ridiculous" and "baseless," IBM on Monday dismissed a report that said the technology giant plans to lay off 1 in 4 of its workers, or 100,000 people.

NHL sends GoPro cameras onto the ice

Jan 23, 2015

Ice hockey fans will get a new perspective on the fast-moving game when National Hockey League players don GoPro cameras, starting with this weekend's all-star fixture.

User comments : 0

Please sign in to add a comment. Registration is free, and takes less than a minute. Read more

Click here to reset your password.
Sign in to get notified via email when new comments are made.