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Respected Contributor
Posts: 3,659
Registered: ‎03-09-2010

Re: Amazon buying Whole Foods

I prefer Sprouts Farmer's Market to WF, but do most of my grocery shopping between Costco & Fry's Marketplace, our local Kroger owned store.

 

The main thing I seem to be buying at Sprouts lately is Icelandic Provisions Skyr/Yogurt.   Yum! 

Honored Contributor
Posts: 22,137
Registered: ‎03-10-2010

Re: Amazon buying Whole Foods

I love Whole Foods!  I hope they don't mess around with it too much!

Respected Contributor
Posts: 3,942
Registered: ‎03-16-2010

Re: Amazon buying Whole Foods


@itiswhatitis wrote:

@Snowpuppy wrote:

And now you know why Amazon was discounting shipping for low income folk.

 

All they had to do was provide their SNAP card number to verify.

 

So well thought out!

 

Amazon is going to issue a debt offering, this is not a cash sale. Appears Amazon stock may be downgraded as they take on this massive debt.

 

 


@Snowpuppy could you point me to that story?  If you have something you could share that would be great @Snowpuppy.  I'd like to read it.


__________________________________________________

 

@itiswhatitis,I followed this news most of the day and I haven't heard anything about it not being a cash deal.  In fact analysts were talking about the fact that Amazon stock gained enough in the market today after the announcement that it pays for the deal itself.  I believe the value of Amazon stock increase today was around 15 billion dollars.

 

Here is an article that talks about the sale:  http://www.investopedia.com/news/amazon-buys-whole-foods-137-billion-deal-mackey-debt/

 

There are also many other articles about how this impacts Walmart, Cotsco, Kroger, and other groceries.  Those stocks tanked today and all combined lost around 40 billion dollars: http://www.cnbc.com/2017/06/16/amazons-whole-foods-bid-wipes-billions-off-retailers-food-stocks.html

 

I am not an analyst by any means and just know what I heard on CNBC today and articles I have read about the deal.  As I mentioned upstream...I am concerned about my choice of groceries for my shopping and hope the other grocery store chains survive. Guess I will just have to wait and see since no one really knows.  


* Freedom has a taste the protected will never know *
Esteemed Contributor
Posts: 5,069
Registered: ‎05-27-2016

Re: Amazon buying Whole Foods


@pitdakota wrote:

@itiswhatitis wrote:

@Snowpuppy wrote:

And now you know why Amazon was discounting shipping for low income folk.

 

All they had to do was provide their SNAP card number to verify.

 

So well thought out!

 

Amazon is going to issue a debt offering, this is not a cash sale. Appears Amazon stock may be downgraded as they take on this massive debt.

 

 


@Snowpuppy could you point me to that story?  If you have something you could share that would be great @Snowpuppy.  I'd like to read it.


__________________________________________________

 

@itiswhatitis,I followed this news most of the day and I haven't heard anything about it not being a cash deal.  In fact analysts were talking about the fact that Amazon stock gained enough in the market today after the announcement that it pays for the deal itself.  I believe the value of Amazon stock increase today was around 15 billion dollars.

 

Here is an article that talks about the sale:  http://www.investopedia.com/news/amazon-buys-whole-foods-137-billion-deal-mackey-debt/

 

There are also many other articles about how this impacts Walmart, Cotsco, Kroger, and other groceries.  Those stocks tanked today and all combined lost around 40 billion dollars: http://www.cnbc.com/2017/06/16/amazons-whole-foods-bid-wipes-billions-off-retailers-food-stocks.html

 

I am not an analyst by any means and just know what I heard on CNBC today and articles I have read about the deal.  As I mentioned upstream...I am concerned about my choice of groceries for my shopping and hope the other grocery store chains survive. Guess I will just have to wait and see since no one really knows.  


@pitdakota, thanks I haven't read anything either pertaining to @Snowpuppy's claims but I wanted to be sure.  

 

Right now, I have no skin the in the game either way except I love Amazon but never had an opportunity to shop at a whole foods before.

 

Thank you.

*Call Tyrone*
Respected Contributor
Posts: 4,291
Registered: ‎03-09-2010

Re: Amazon buying Whole Foods

[ Edited ]

The debt offering is out on Forbes. GS will be structuring the bond sale.

 

I dont know how to post the link

Respected Contributor
Posts: 3,942
Registered: ‎03-16-2010

Re: Amazon buying Whole Foods


@Snowpuppy wrote:

The debt offering is out on Forbes. GS will be structuring the bond sale.

 

I dont know how to post the link


__________________________________________________________

 

@Snowpuppy  that is very common for how these deals work.  Banks don't tend to have $13.7 billion laying around to dole out all at once,  not to mention that companies usually don't want to take that amount out of their net worth all at once.  So they purchase bonds and use a bridge loan type of structure.  At least that is the way I understand all of these deals are made when there are major deals, mergers, or acquisitions.  But Amazon will buy that amount in bonds, so it is considered a cash deal.  Amazon is worth far more than 13.7 billion at this point in time.  Goldman Sacs also stands to make quite a bit of money on the deal as well as the banks GS will use to shore up the deal.

 

And BTW....most of the info I have seen about Amazon making the SNAP move was seen by analysts to be a direct competition move aimed at Walmart in order to increase their number of low income individuals purchasing groceries online by taking them away from Walmart.  Several analysts are now crowing that this was a sign they picked up that Amazon was getting ready to make a bold move to acquire online grocers.  It was well known that Amazon was testing several markets to look at establishing a dominance in the online grocery venture so they saw this as a direct move against Walmart to gain more customers.  


* Freedom has a taste the protected will never know *
Valued Contributor
Posts: 538
Registered: ‎10-24-2014

Re: Amazon buying Whole Foods

All that's going to be left is Walmart and Amazon. The other stores don't have a chance.

Respected Contributor
Posts: 3,942
Registered: ‎03-16-2010

Re: Amazon buying Whole Foods


@itiswhatitis wrote:

@pitdakota wrote:



 


@Snowpuppy could you point me to that story?  If you have something you could share that would be great @Snowpuppy.  I'd like to read it.


__________________________________________________

 

@itiswhatitis,I followed this news most of the day and I haven't heard anything about it not being a cash deal.  In fact analysts were talking about the fact that Amazon stock gained enough in the market today after the announcement that it pays for the deal itself.  I believe the value of Amazon stock increase today was around 15 billion dollars.

 

Here is an article that talks about the sale:  http://www.investopedia.com/news/amazon-buys-whole-foods-137-billion-deal-mackey-debt/

 

There are also many other articles about how this impacts Walmart, Cotsco, Kroger, and other groceries.  Those stocks tanked today and all combined lost around 40 billion dollars: http://www.cnbc.com/2017/06/16/amazons-whole-foods-bid-wipes-billions-off-retailers-food-stocks.html

 

I am not an analyst by any means and just know what I heard on CNBC today and articles I have read about the deal.  As I mentioned upstream...I am concerned about my choice of groceries for my shopping and hope the other grocery store chains survive. Guess I will just have to wait and see since no one really knows.  


@pitdakota, thanks I haven't read anything either pertaining to @Snowpuppy's claims but I wanted to be sure.  

 

Right now, I have no skin the in the game either way except I love Amazon but never had an opportunity to shop at a whole foods before.

 

Thank you.


________________________________________________________

 

@itiswhatitis  I like Amazon and wish them well and as I stated I don't shop at Whole Foods.  No particular reason except that I have a Kroger within a mile of me, an Aldi's that is really close, and another locally owned grocer that is close.  I shop the sales lol.  According to the analysts that are so excited about this deal, those groceries may very well end up going under.  Amazon may well compress the price of common groceries (which will be good for consumers), but grocery chains that don't have the reserves that compare to Amazon will struggle to make a profit so they are at risk of not surviving. 

 

 


* Freedom has a taste the protected will never know *
Contributor
Posts: 25
Registered: ‎06-17-2017

Re: Amazon buying Whole Foods

 

 

I thought this was great news, even though I stopped shopping at Whole Foods when I found comparable organic products at my local Kroger grocery store at cheaper prices.

 

I will be watching what happens to pricing and delivery options with Amazon's purchasing power. Could be a big game changer if they start delivering high-quality, low cost organic products to our doorsteps for free!

Esteemed Contributor
Posts: 5,069
Registered: ‎05-27-2016

Re: Amazon buying Whole Foods


@suzyQ3 wrote:

@itiswhatitis wrote:

@winkk wrote:

I just saw that on CNN.  Amazon keeps getting bigger and bigger.  In a way I feel bad because the smaller retailers don't have a chance against companies like Amazon.  But, I shop on Amazon so I guess I can't complain too much.


That's not necessarily true @winkk.  Many small retailers sell their wares on Amazon.  Amazon can even act as the go between for products.  Amazon has a "marketplace" of items not sold directly by them.

 

Besides, isn't this what many proclaim to be so great about the "Free Market?"


Not to quibble, @itiswhatitis, but we don't have a "free market" in the literal sense. The lesson we learned from the late 19th century is that a totally laissez-faire market becomes one in which too few have too much control of the market. That's the reason we and all other democratic countries put the brakes on those who otherwise would have total reign without consideration of the consumer.

 

I'll take a wait-and-see attitude here. I patronize both Amazon and Whole Foods.


@suzyQ3, I think we still operate within a Free Market Society.  I could have sworn I posted something to this affect already.  Regulations being what they are, doesn't mean it's fair ~ but we're still the same USA with a mix of Capitalism and socialism....

*Call Tyrone*