By BW Staff
Online retailer Amazon.com ( (AMZN)
) said on July 22 that it is buying Zappos.com, the online retailer of shoes and apparel, for $807 million in common stock and $40 million in cash and restricted stock.
According to a statement, Seattle-based Amazon will buy Zappos in exchange for 10 million shares of Amazon stock—worth about $807 million, based on the average closing price for the 45 trading days ended July 17. Amazon will also give Zappos employees $40 million in cash and restricted stock.
The companies said that the Zappos management team will remain and Zappos will remain headquartered in the Las Vegas suburb of Henderson, Nev.
"Zappos is a customer-focused company," Amazon CEO Jeff Bezos said in a statement. "We see great opportunities for both companies to learn from each other and create even better experiences for our customers."
Zappos was founded in 1999 by Nick Swinmurn as Shoesite.com.