Amazon to buy owner Quidsi for $500M

November 8, 2010

(AP) -- Expanding its online retail empire, Inc. said Monday it is buying Quidsi, the owner of and, 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. sells health, beauty and cleaning products online, while sells baby-care items, including food and maternity wear. And Quidsi recently launched, 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 - has been beating Amazon at its own game in the nonapparel baby category." 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, 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: Amazon launches videogame trade-in store


Related Stories

Amazon 2Q profit falls with Toys R Us settlement

July 23, 2009

(AP) -- 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 purchasing BuyVIP online sales club

October 7, 2010

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

Amazon 3Q profit jumps 16 percent, but costs rise

October 21, 2010

(AP) -- 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 fell in extended ...

Recommended for you

Roboticists learn to teach robots from babies

December 1, 2015

Babies learn about the world by exploring how their bodies move in space, grabbing toys, pushing things off tables and by watching and imitating what adults are doing.

Xbox gaming technology may improve X-ray precision

December 1, 2015

With the aim of producing high-quality X-rays with minimal radiation exposure, particularly in children, researchers have developed a new approach to imaging patients. Surprisingly, the new technology isn't a high-tech, high-dollar ...

Making 3-D imaging 1,000 times better

December 1, 2015

MIT researchers have shown that by exploiting the polarization of light—the physical phenomenon behind polarized sunglasses and most 3-D movie systems—they can increase the resolution of conventional 3-D imaging devices ...


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.