The Wealth Effect on Acquisition’s Amazon of Whole Foods

DOI

10.2991/978-94-6463-098-5_11How to use a DOI?

Keywords

Amazon; whole foods; acquisition; synergy; event study methodology

Abstract

This report examines that the wealth effect of the announcement on Amazon’s acquisition of Whole Foods by using financial analysis and Event Study methodology on acquirer. From ratio analysis, the acquisition generate operating and financial synergy effect in accord with motivation. In the event study, daily returns of 120 days before announcement are regarded as estimation period and a test period is [-5, +5]. The result is positive cumulative abnormal returns, reflecting positive attitude of investors for the acquisition consisting two reasons. Moreover, the report describes current development of Amazon and Whole Foods and challenges in offline that need to continue develop new technologies and to increase market shares. Thus, it is a successful acquisition combining e-commerce giant and offline stores, which is a valuable case for other similar enterprises.

Copyright

© 2023 The Author(s)

Open Access

Open Access This chapter is licensed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (http://creativecommons.org/licenses/by-nc/4.0/), which permits any noncommercial use, sharing, adaptation, distribution and reproduction in any medium or format, as long as you give appropriate credit to the original author(s) and the source, provide a link to the Creative Commons license and indicate if changes were made.

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TY  - CONF
AU  - Shihan Yu
PY  - 2022
DA  - 2022/12/27
TI  - The Wealth Effect on Acquisition’s Amazon of Whole Foods
BT  - Proceedings of the 2022 4th International Conference on Economic Management and Cultural Industry (ICEMCI 2022)
PB  - Atlantis Press
SP  - 84
EP  - 91
SN  - 2352-5428
UR  - https://doi.org/10.2991/978-94-6463-098-5_11
DO  - 10.2991/978-94-6463-098-5_11
ID  - Yu2022
ER  -