The Wall Street Journal reported Sunday that Amazon.com Inc will acquire Quidsi Inc, the parent company of Diapers.com and Soap.com, for approximately $500 million. The deal will be for $500 million in cash and Amazon will take on $45 million in Quidsi debt and other liabilities. Furthermore, Quidsi management will remain with Amazon after the deal. Some analysts are saying that Amazon is overpaying by as much as $200 million for Quidsi but Andy Kibbens (The Co-CEO of The Markets Are Open) disagrees. Kibbens stated that "Quidsi is the fastest growing e-commerce company so it is definitely worth it for Amazon to pay a premium for it today. This acquisition should help boost Amazon's bottom line in the future and ultimately push the stock higher".
Just recently, Jim Cramer (host of CNBC's Mad Money) added Amazon to his list of favorite stocks named F.A.D.S.C.A.N. which stands for F5 (NASDAQ: FFIV), Apple (NASDAQ: AAPL), Deckers (NASDAQ: DECK), Salesforce.com (NYSE: CRM), Chipotle (NYSE: CMG), Amazon (NASDAQ: AMZN), and Netflix (NASDAQ: NFLX). This indicates that Cramer sees Amazon outperforming most other stocks in the near future. Shares of Amazon are up 26.95% year to date and up 315.6% over the past 5 years. It is clear that Amazon is a growth story and this acquisition is in line with Amazon's strategy to grow.
