Thread regarding Wal-Mart Stores Inc. layoffs

Amazon reportedly is as awful to work for as Walmart. In the past I thought Amazon was worse. But these days I think Walmart may be worse. We keep hearing about this trickle of layoffs every week and nobody knows how long they'll have a job.

So WFM's $0.9B of operating profit in 2016 is unprofitable? And what does leasing have to do with that fact? The firm is also cash flow positive.

To the OP, so a multi-billion dollar and highly successful company like Amazon should take into consideration the only single Wholefoods in Arkansas before making global business investments?

You are a new defintion in Urban Dictionary.

LoL, WFM is not a profitable enterprise...they don't even own their own buildings they lease. Now if Amazon had bought Costco, then we should really be worried for WMT...

The OP/thread starter must eat crow after reading the Newsweek article. LOL.

Recent Newsweek article is interesting, but doesn't sound good for Walmart.

WHY AMAZON BOUGHT WHOLE FOODS? JUST LOOK AT HOW IT CRUSHED WALMART

http://www.newsweek.com/amazon-whole-foods-walmart-amazon-buys-whole-foods-walmart-crushed-stock-628779

Amazon expects to use debt and cash on hand to fund the transaction. Given Amazon's cash balances on hand, ability to generate free cash flows, WFM management remaining in place, and WFM being a profitable entrerprise, this is not necessarily a very risky debt issuance. Additionally, the core AMZN business is still demonstrating growth rates >20%, so the enterprise is certainly resonating with customers.

Goldman Sachs and Merrill Lynch are the financial institutions involved.

Read the announcement on the Amazon website that includes a discussion on how the acquisition will be financed. Amazon has the cash on hand to make this purchase outright without external financing, and they had $7.7B in debt at the end of Q1. Additionally, WFM highest stock valuation was at the $65 range, and they are paying $42/share, which is a much lower P/E premium than WMT paid for Jet.com.

Amazon to Acquire Whole Foods Market

Whole Foods Market ranked #28 and Amazon ranked #2 on Fortune’s 2017 list of World’s Most Admired Companies

SEATTLE & AUSTIN, Texas--(BUSINESS WIRE)--Jun. 16, 2017-- Amazon (NASDAQ:AMZN) and Whole Foods Market, Inc. (NASDAQ:WFM) today announced that they have entered into a definitive merger agreement under which Amazon will acquire Whole Foods Market for $42 per share in an all-cash transaction valued at approximately $13.7 billion, including Whole Foods Market’s net debt.

zjr, you're wrong about Amazon paying in cash....they purchased overvalued Whole Foods with debt and whichever bank is dumb enough to finance that deal deserves whatever they get...

I wonder if Amazon spends as much time worrying about Walmart as Walmart spends worrying about Amazon. I also wonder if Walmart would be more successful if they spent more time working on their own strategy and expanding the Walmart that has been successful all of these years and not trying to beat Amazon. I think the focus on customer experience and eCommerce is great and it's a plan that they could win at but it's not about being the best Walmart for the consumer as much as it is about beating Amazon.

I also hear that Amazon is tough to work for but there isn't fear of losing their jobs like Walmart. Take a look. Go look at Amazon, Whole Foods, Target on the layoff. Walmart is alienating their workers with these layoffs.

Jeff Bezos is one of the smartest business managers in the world. This is a strategic play, and he and his team certainly thought this through before this acquisition of Whole Foods. Amazon is making this purchase to acquire capability and knowledge in grocery, distribution capability, and access to customers in metro areas that are also in the Amazon customer demographic. Amazon has a lot of cash on hand (More than Walmart), and can afford to make this purchase of a profitable entity that is cash flow positive.

I don't think Amazon wants to run stores. They want food expertise and delivery depots. Couple that with the drones they are trying to develop and you have a very real problem.

Think bigger my friend.

Unlikely

Also, it's about the expertise and the capability they have purchased. Similarly with Jet aquisition. It's about getting the people, knowledge, and experience in that arena.They may create something new with that going forward to propel them since they now have financial backing.

What a koolaid loving post. Will read your whine when you get laid off math whiz.