Amazon.com Inc., the world’s biggest online retailer, is close to buying Quisdi Inc., which is the parent company of Diapers.com and soap.com for $540 million in cash.
Amazon has been diversifying its product lines and has attempted to encourage consumers to sign up for subscriptions programs that will build more loyalty to the site. In 2009, Amazon bought online shoe retailer Zappos.com for around $1.1 billion.
Quisdi was founded by Marc Lore and Vinit Charara and made an estimated $180 million in revenues for 2009 and has been reported to have had discussions with Wal-Mart Stores Inc. for potential buy out possibilities. However, the diaper supplier is likely to have an estimated revenue of $300 million for 2010, according to Fortune.
The background about the synergy between the two companies is that both companies have been competing in the baby market, given that Quisdi sells around 500 million diapers in one year according to Businessweek.
“An intense focus on a category enables efficiencies that even Amazon would have trouble replicating,” said Jordan Rohan, an analyst for Stifel Nicolaus, in an interview with BusinessWeek. “You can optimize your business. I think specialization with scale is going to be the central theme for e-commerce for this decade.”
Amazon has been diversifying its product lines and has attempted to encourage consumers to sign up for subscriptions programs that will build more loyalty to the site. In 2009, Amazon bought online shoe retailer Zappos.com for around $1.1 billion.
Quisdi was founded by Marc Lore and Vinit Charara and made an estimated $180 million in revenues for 2009 and has been reported to have had discussions with Wal-Mart Stores Inc. for potential buy out possibilities. However, the diaper supplier is likely to have an estimated revenue of $300 million for 2010, according to Fortune.
The background about the synergy between the two companies is that both companies have been competing in the baby market, given that Quisdi sells around 500 million diapers in one year according to Businessweek.
“An intense focus on a category enables efficiencies that even Amazon would have trouble replicating,” said Jordan Rohan, an analyst for Stifel Nicolaus, in an interview with BusinessWeek. “You can optimize your business. I think specialization with scale is going to be the central theme for e-commerce for this decade.”
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