Amazon tightens its grip on Zappos.com

by Stevie Smith - Jul 28 2009, 15:00

Following on from its decision to acquire online apparel and footwear company Zappos.com, retail giant Amazon has now confirmed it is to purchase a further 10 percent stake in the company held by venture capital outfit Sequoia Capital Operations, LLC.

While details regarding the Sequoia buyout remain unknown, the venture capital specialist is believed to have invested some $35 million USD in Zappos.com across different stages of funding.

On July 22, Amazon announced its agreement to acquire Zappos.com in exchange for approximately 10 million shares of Amazon common stock, equal to approximately $807 million USD.  Additionally, Amazon also said it will provide Zappos employees with some $40 million USD in cash and restricted stock units.

"Zappos is a customer focused company," said Jeff Bezos, founder and CEO of Amazon.com. "We see great opportunities for both companies to learn from each other and create even better experiences for our customers."

According to the deal, the Zappos management team will remain unaltered by the Amazon acquisition and the business will continue to operate its successful brand independently from its headquarters in Las Vegas, Nevada.

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