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: WhatsApp says it now has half billion users

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

SK Hynix posts Q1 surge in net profit

29 minutes ago

South Korea's SK Hynix Inc said Thursday its first-quarter net profit surged nearly 350 percent from the previous year on a spike in sales of PC memory chips.

Zynga founder Pincus leaving operations role

11 hours ago

Online game maker Zynga says company founder Mark Pincus is stepping down as chief product officer, less than a year after he was replaced as the company's CEO.

Amazon Prime wins streaming deal with HBO

15 hours ago

Amazon scored a deal Wednesday to distribute old shows from premium cable TV channel HBO to its monthly Prime subscribers, landing a blow on rival Netflix in the streaming video battle.

User comments : 0

More news stories

Brazil enacts Internet 'Bill of Rights'

Brazil's president signed into law on Wednesday a "Bill of Rights" for the digital age that aims to protect online privacy and promote the Internet as a public utility by barring telecommunications companies ...

SK Hynix posts Q1 surge in net profit

South Korea's SK Hynix Inc said Thursday its first-quarter net profit surged nearly 350 percent from the previous year on a spike in sales of PC memory chips.

FCC to propose pay-for-priority Internet standards

The Federal Communications Commission is set to propose new open Internet rules that would allow content companies to pay for faster delivery over the so-called "last mile" connection to people's homes.

When things get glassy, molecules go fractal

Colorful church windows, beads on a necklace and many of our favorite plastics share something in common—they all belong to a state of matter known as glasses. School children learn the difference between ...

FDA proposes first regulations for e-cigarettes

The federal government wants to prohibit sales of electronic cigarettes to minors and require approval for new products and health warning labels under regulations being proposed by the Food and Drug Administration.