Amazon Dishes Out $540 Million for Diapers.com and Soap.com Takeover

By on November 7, 2010

Retail giant Amazon.com was reported last week to be severely undercutting diaper and baby needs supplier Diapers.com. Parent company Quidsi also operates Soap.com. Quidsi previously declined several buy-out offers from Amazon.

Amazon’s latest acquisition offer came in at $540 million in cash according to Fortune. During hard times, the co-founders reluctantly accepted the offer. There was a sentiment that the company could do very well and expand on it’s own.

On a positive note, company co-founders have agreed to multi-year contracts for employees to continue work under Amazon. Additionally, the buyout price comes in at $240 million over the company’s latest valuation of $300 million.

Diapers.com has had tremendous success in recent years. They have an amazing brand name and gained Zappo-esque notoriety for customer service.  More impressive are the innovations in robotic warehouse management and shipping that allowed the company to be extremely efficient. (See video)

Congratulations to Quidsi on building such great companies and brands. I am sure than Amazon is wise enough to recognize the value of the domain names and continue to use them as independent retail outlets.

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About Mark Fulton

Mark is the Founder of DotSauce Magazine and a full time web developer, domain investor, SEO and online marketing professional residing in North Carolina, USA. Visit MarkFulton.com for information on freelance website development, SEO and consultation services.