EP089 - Amazon acquires Whole Foods Hot Take Amazon agreed to spend $13.7 billion to buy the grocery store chain Whole Foods Market Inc., which has more than 450 stores.  The grocery category is a $795B opportunity in the US that has largely been untouched by digital.   Terms of the deal Wall Street reaction Impact on the grocery category Winners and Losers Amazon-Scape that Scot mentions on the show Amazon Deep Dive EP24 Podcast Don't forget to like our facebook page, and if you enjoyed this episode please write us a review on itunes. Episode 89 of the Jason & Scot show was recorded on Friday, June 16, 2017. http://jasonandscot.com Join your hosts Jason "Retailgeek" Goldberg, SVP Commerce & Content at Razorfish, and Scot Wingo, Founder and Executive Chairman of Channel Advisor as they discuss the latest news and trends in the world of e-commerce and digital shopper marketing.   New beta feature - Amazon Automated Transcription of the show: Transcript Jason:  [0:25] Welcome to the Jason and Scott show this is episode 89 being recorded on Friday June 16th 2017 I'm your host Jason retailgeek Goldberg and as usual I'm here with your co-host Scot Wingo. Scot:  [0:39] Hey Jason welcome back Jason Scott show listeners tonight we are disrupting our usual weekly schedule for a new. [0:47] A schedule format that we call a hot take this is going to be an episode where we really go deep on one big news item. [1:11] Unless you're sleeping on a rock that big news item today is Amazon's 13.7 billion dollar acquisition of Whole Foods Jason what do you think pretty crazy day in the world of the e-commerce and Grocery on. Jason:  [1:25] It it was it was totally inconsiderate I woke up this morning with a full agenda of things I had to do and this completely disrupted it. Scot:  [1:33] Cool so let's kick it off at I'm really curious to hear your thoughts you and I haven't had a chance to talk about it so this is definitely a hot take let me kick it off with a little bit of. Data so the deal was at $42 a share it was announced this morning before the Market opens so that's a 27% premium to the the share price from yesterday. As I mentioned at the top of the show 13.7 billion dollar valuation. [1:59] So Whole Foods has 460 stores they are mostly in the US they do have some stores in other countries, 87000 team members I think the last number I saw I had Amazon at 3:40 340,000 so this puts Amazon well over 400,000 employees, another little nuances there's a 400 million dollar breakup fee and what's interesting about that is the way these deals work is you know they. You you got there you submit a bid you work with a board the board except said but as a public company they have to accept bids from other folks. And a deal of this size has to go through quite a bit of shareholder and Regulatory governmental kind of approvals so. The breakup fee kind of indicates that Amazon felt like there was some risk that there could be a competitor competitive bid and then the market reacted also. Closing at 4286 today so some hedge fund manager out there is willing to pay a little bit more than the $42 a share as kind of a bit of a hedge to see if another bitter comes in so. Now that the kids this could be the start of the drama so I have to kind of see using things happen pretty quickly and within the first 15 to 30 days so. I know relatively quickly if there's going to be another bit or not so that'll be interesting so Jason. Jason:  [3:18] What does that is that for a million breakup feet is that in some sort of like a poison pill that makes it less appealing for someone else cuz they would lose the former million value of what they just acquired. Scot:  [3:28] Yes so that just means that it has to be 13.7 + .4 so 14.1 so they would have to. Go to have to cover that and it just means that you know it can't be 13.7 one. Really so it's Amazon Amazon's argument on that would be this is how much money were investing in this and the Damage that would cause if yo