Wow, this is huge, Amazon.com has just bought Zappos.com for $847 million.
Zappos.com CEO Tony Hsieh sent a letter to his employees about the acquisition and Amazon.com CEO Jeff Bezos made a video regarding the announcement.
This morning, our board approved and we signed what’s known as a “definitive agreement”, in which all of the existing shareholders and investors of Zappos (there are over 100) will be exchanging their Zappos stock for Amazon stock. Once the exchange is done, Amazon will become the only shareholder of Zappos stock.
UPDATE: Here’s the press release from Amazon.com.