With Amazon's shares soaring today, the value of its just-announced deal to acquire online shoe retailer Zappos appears to nearing the $1 billion mark. Amazon is acquiring all of Zappos' shares for 10 million of its own stock. With Amazon shares today trading at more than $94 a share, that equals $940 million. As part of the Zappos deal, Amazon is also paying the company's employees $40 million in cash and restricted stock. So the total value of the Zappos acquisition is now hovering around $980 million.
Of course, Amazon's share price could change a lot between now and the fall, when the deal is expected to close. But a $1 billion deal would certainly be a huge one for Amazon (and for Zappos' venture capital investors). When the company yesterday announced the Zappos acquisition -- valuing at $847 million -- it was already the largest in company history.
Stay tuned for Amazon's second-quarter earnings in a few hours.
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