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Amazon Acquisition and Equity Investment
Finance & Accounting
Pages 4 (1004 words)
ANSWER # 1 1- KIVA INC SYSTEM IN 2012 Amazon in the year 2012 acquired Kiva Inc system. The orange robots can take off things from shelves and slide into product lots to take the required product. The investment was of about $678 million and aimed to enhance the productivity of fulfillment center (Amazon, 2012).
2- SET OF COMPANIES ACQUIRED BY AMAZON IN 2011 In 2011, set of companies were acquired with price of US $771 million by Amazon (Amazon, 2011). None of the companies are defined specifically but all are aimed at market development for Amazon for increasing customer base as well as sales channel increase in portfolio. Two of the companies included Marshall Cavendish US Children’s Books Titles and LoveFilm International Limited Etc (Amazon, 2013). The change in sales and net income from acquisition was as follows: Set Of Companies in 2011 2011 2010 Sales 48,077 34,204 Change In Sales 40.56% Net income 631 1152 Change In NI -45.23% (Amazon, 2011) The above acquisition also impacted sales positively. But rise in sales is increasingly offset by the downside movement of net income. With acquisition of companies Amazon.com has burdened its net income with additional five percent than magnitude of sales rise. Hence, the acquisition cannot be referred as successful strategy. ...
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