Whole Foods' stock soared 29 per cent. Amazon's rose 2.4 per cent. Back in April, activist investor Jana Partners took an 8% stake in the company and pushed the board to look into strategic options including a sale.
"Amazon didn't just buy a grocery retailer". "Amazon has moved squarely onto the turf of traditional supermarkets and poses a much more significant threat".
Early Friday morning, Amazon.com (AMZN - Free Report) made waves in the stock market as the company announced their plans to buy organic grocery chain Whole Foods Market (WFM - Free Report) in a deal valued at $13.7 billion.
This big transaction is expected to close during the second half of the year.
Kyle Bunch is with R/GA, a marketing, advertising and consulting firm right across from the Whole Foods headquarters.
"People who used to say Amazon couldn't be profitable because they were just a bookstore might want to think before they suggest Amazon can't make money with Whole Foods because it's just a grocery store", Low said.
The deal is likely the best outcome for Whole Foods shareholders, while Amazon stands to gain opportunities to drive its grocery business.
News that Amazon is buying health-focused grocery chain Whole Foods shook the business world Friday.
Empire: The parent company of several grocery store chains offers online shopping with either delivery, in-store pickup or both at several IGA locations. The company will charge the shopper's Amazon account and send the receipt.
"If they actually, Amazon Prime, decides to deliver food to your home, boy that's great, it would be a wonderful thing!"
Meanwhile, in a letter to its customers, Whole Foods Market, Inc.
Whole Foods has received a lot of pressure from key investors, resulting in a shake-up in management.
Because of the increasing competition, Whole Foods stock has suffered. "More and more we will see Amazon brand products as they work to create their own brand at retail".