Whoa, the story behind Amazon's acquisition of Whole Foods is pretty intense
Remember earlier this summer when Amazon announced that it had bought Whole Foods and it seemed to come out of nowhere? Obviously, all business deals take some time. But according to a Recode report, the story behind Amazon’s acquisition of Whole Foods was super intense.
Amazon recently had to file with the Securities Exchange Commission (SEC) to report the $13.7 billion dollar deal and as such, it had to lay out a timeline of events outlining how it all went down. This is totally routine for billion-dollar mergers and acquisitions; the government likes to make sure things are on the up and up as much as possible.
ANYHOO, the timeline shows that just before Memorial Day, Amazon sent Whole Foods an offer to buy it out at $41 a share. Now, if you’ve been keeping up on your Million Dollar Listing marathons, you know the first offer is always just a play. Whole Foods came back and asked for $45 a share. Remember this: Always know your worth!
Amazon and Whole Foods went back and forth, but Amazon was always calling the shots.
Everyone’s favorite online retailer came back with a final offer of $42 a share, but made it super clear that if anyone leaked to the press about the discussions, the whole thing was off. Amazon also told Whole Foods that if they wanted the $42 a share (or the deal at all) the grocer couldn’t negotiate with anyone else for a better price. The supermarket chain was, allegedly, in talks with another equity firm looking to buy Whole Foods, but when Amazon laid out the terms, they made the call.
While everything is still being finalized, other companies (or you! hey, a girl can dream!) can make Whole Foods a better offer. With one catch — if Whole Foods accepts another offer, it has to pay Amazon a $400 million break-up fee.
Dayum, right?! Jeff Bezos, Amazon’s founder, is known for being a tough negotiator, but that kind of play is intense! Amazon didn’t do anything wrong, but in a world where most women are too scared to ask for a raise or negotiate their benefits package when they get a new job offer (or charge their S.O. a fee for heartbreak), it’s a good lesson to remember.
Of course, getting your first “real” job doesn’t exactly give you as much play as business moguls, but knowing what you’re worth and what you’re willing to risk in a negotiation is badass. Forget the Art of the Deal, let’s have Jeff Bezos teach everyone how to negotiate.