Key Takeaways
- Key Takeaways
- 1. Whole Foods Market
- 2. Twitch.tv
- 3. PillPack Inc.
- 4. IMDb (Internet Movie Database)
- 5. Box Office Mojo
- 6. Audible
- 7. Zappos
- 8. Body Labs
- 9. Ring
- 10. Avalon Books
- 11. Goodreads
- 12. Amazon Robotics (formerly Kiva Systems)
- 13. Woot
- 14. ShopBop
- 15. MGM Holdings Inc.
- 16. Souq.com
- 17. Alexa
- 18. A9.com
- The Bottom Line
Key Takeaways
- Amazon is an eCommerce giant founded by Jeff Bezos in 1994.
- Aside from the eCommerce platform, Amazon also owns a chain of companies in tech, medicine, media, and more.
- Amazon’s biggest acquisition was Whole Foods Market ($13.7 billion), which paved the way for the company’s entry to brick-and-mortar retailing.
As of writing, Amazon founder and former CEO Jeff Bezos, has a net worth of $178.9 Billion, making him the second-richest man on the planet. Since the company started in 1994, the eCommerce giant has revolutionized the way people shop. What started as an online bookstore, Amazon has transformed into a one-stop-shop that sells everything from books to groceries to furniture and makes around $638 million per day.
But Amazon is not just an eCommerce website. The company has also ventured into other businesses such as cloud computing, artificial intelligence, and even healthcare. If you’re curious which companies Amazon acquired throughout the years, we’ve compiled a list below.
1. Whole Foods Market
Whole foods market is an organic grocery store acquired by Amazon in 2017 for $13.7 billion. It is one of the few USDA-certified organic food distributors in the United States, and it had over 10 billion in market capitalization prior to Amazon’s acquisition. The grocery store is, by far, the biggest acquisition of Amazon, and it served as the company’s entry to brick-and-mortar retailing.
After acquiring the company, Amazon combined Amazon Fresh and Whole Foods, making it easier for people to order from both stores. The company also opened more Amazon Fresh stores around the country, bringing the total branches up to 13.
2. Twitch.tv
Twitch Interactive is a popular live streaming website primarily used by video game enthusiasts. The website was launched in 2011, and since then, it has garnered more than 55 million unique visitors. Amazon acquired the company in 2014 for $970 million, which then paved the way for the eCommerce giant’s entry into the video game and streaming industries.
3. PillPack Inc.
When Amazon acquired PillPack, it was seen as the company’s expansion to the online prescription medication business. PillPack is an online pharmacy that started in 2013 and was acquired by Amazon in 2018 for $753 million.
With Amazon’s extensive delivery network, the company is able to deliver prescribed medications overnight throughout the country.
4. IMDb (Internet Movie Database)
Launched in 1993, Internet Movie Database (IMDb), is the largest online movie database. It contains approximately 14 million movie plots, casts, ratings, facts, trivia, and features profiles of different celebrities who starred in every movie. Jeff Bezos bought the company for $55 million in 1998.
In 2002, Bezos expanded IMDB and added the IMDbPro – a subscription-based service exclusively used by entertainment professionals. Although it’s a subsidiary of Amazon, IMDb remains relatively independent, which is why many people may not know that Amazon owns it.
5. Box Office Mojo
Box Office Mojo is a company under IMDb. It publishes reports on box office revenue and makes these reports visible to the public. Amazon acquired the company in 2008, and like IMDb, it operates independently.
6. Audible
Audible is an online audiobook and podcast service. It’s currently one of the largest producers of audiobooks all over the world. In 2008, Amazon bought the company for $300 million and the acquisition paved the way for Amazon’s entry into the digital narrative world.
Amazon users can purchase audiobooks to complement their Amazon Kindle. Aside from audiobooks, the platform also offers audio versions of newspapers, magazines, and other publications.
7. Zappos
Zappos is a leading retailer of shoes and footwear all over the world. Its name was derived from the Spanish word “Zapatos”, which translates to “shoes” in English. Founded in 1999, the company quickly grew and remained independent until Amazon acquired it in late 2009 for $1.2 billion.
Zappos is highly commended for its top-notch customer service. While Amazon hasn’t released a report on how much the company makes, it’s reported that Zappos generates around $2 billion in revenue annually, making it a valuable asset to Amazon.
8. Body Labs
Founded in 2013, Body Labs is a Manhattan-based company that uses artificial intelligence to produce a 3D body scan. This feature allows people to see how certain clothes move and fit with specific body types. Amazon eventually acquired the company in 2017. It was a sensible acquisition since Amazon was slowly making its entry into fashion and had started developing its own private clothing line.
Amazon didn’t disclose how much they paid for the acquisition, but reports say that the company spent around $50 million to $100 million for the deal.
9. Ring
Ring LLC is a smart home security company that was acquired by Amazon in 2018 for $1.2 billion. The video doorbell, which allows homeowners to see, talk to, and record people on their doorsteps, is the company’s most popular product.
The company also sells Wi-Fi-enabled devices that easily connect to their smartphones and tablets, and integrates into its own social media platform, the Neighbor App. The users can then post pictures or videos of suspicious activities within their homes’ perimeter. The Neighbor App also allows the users to view posts published within their 5-mile radius.
10. Avalon Books
Avalon Books is a publishing company that specializes in hardcover mystery and wholesome romance. It was established by Thomas Bouregy and ran from 1950 to 2012. Eventually, Amazon acquired the publishing house.
Back then, Avalon books weren’t digitized. Upon acquisition, Amazon added the original titles to its Kindle e-reader platform to make it accessible to its Kindle users. Today, Avalon books are an imprint of Amazon Publishing.
11. Goodreads
Aside from Avalon Books, Amazon also acquired Good Reads, an online book catalog that lets users search for books. The website contains everything from book plots, reviews, ratings, authors, and book suggestions. It’s also a social website where users can create their own book groups and discussions.
Amazon acquired GoodReads in 2013, but the company hasn’t disclosed the price they paid for the acquisition.
12. Amazon Robotics (formerly Kiva Systems)
Kiva was an independent robotics company founded in 2003. The company formerly served big clients such as Gap, Walgreens, Staples, Office Depot, Crate & Barrel, Saks and Fifth, and more before Amazon acquired the company for $775 million in 2012. The name was changed into Amazon Robotics and is now exclusively used at Amazon warehouses.
The Roomba-like robots basically fly around the warehouse and pick up boxes of orders. They then deliver these to workers who pack the items into a box before shipping.
13. Woot
Woot, known for its jokes and great deals, was acquired by Amazon in 2010 for $110 million. It is an online retailer that features at least one discounted product each day (i.e., daily deals).
14. ShopBop
ShopBop is an online fashion retail store that features handpicked women’s clothes and accessories. Founded by two Wisconsin residents, the business exclusively marketed women’s clothes and resold more than 70 designer clothes, including ones from Marc Jacobs and Juicy Couture.
Although ShopBop is a subsidiary of Amazon, both companies operate independently. However, ShopBop relies mostly on Amazon’s Prime shipping fulfillment. This allows shoppers to take advantage of the shipping benefits like two-day shipping, free return, and discounts for succeeding shipments.
15. MGM Holdings Inc.
Metro-Goldwyn-Meyer, or MGM, is an entertainment company that produces and distributes films and other TV content. The company came to be after three companies merged in 1924: Metro Pictures Corporation, Goldwyn Pictures, and Louis B. Mayer Productions. Amazon then acquired it in May 2021 for $8.5 billion.
The MGM Holdings Inc. acquisition makes sense for Amazon as it will let them expand its catalog of movies and intellectual properties for their Prime Video.
16. Souq.com
Souq.com is one of the biggest eCommerce platforms in Arab countries. It was launched in Dubai in 2005, and acquired by Amazon in 2018 for $580 million. Before its acquisition, Souq acquired another company, Wing.ae, that developed next-day delivery services to eCommerce platforms.
17. Alexa
Alexa is an intelligent personal assistant service and it’s one of the most popular products Amazon developed. The product runs on voice command, and you can ask her to perform a variety of tasks like switching off lights, adjusting room temperature, searching for stuff on the internet, or reading a bedtime story.
Alexa was an independent company founded in 1996. Amazon then acquired it for $250 million in 1999.
18. A9.com
Amazon acquired the search and advertising company, A9, in 2003. This Amazon subsidiary focused on developing technology that would enhance the search abilities of websites. Like Google’s algorithm, it uses keywords in deciding which products to display.
Now, Amazon exclusively uses the A9 technology to decide which products they’ll show the users based on their search entries or the keywords they used.
The Bottom Line
Amazon is a powerhouse company, and it’s only growing bigger. With its fingers in so many pies, it can be hard to keep track of everything the retail giant does. But now that you know about all these subsidiaries, you can keep an eye out for them and maybe even start using some of Amazon’s services yourself. Who knows? Maybe one day, Amazon will become your one-stop-shop for everything – from books to groceries to clothes to home goods.