73 "An emerging e-commerce company may very well be able to look at this acquisition as the reason they receive funding," observed Bates. Indeed, Amazon's stock has been performing well -- at least relative to other e-commerce companies such as eBay (Nasdaq: EBAY) -- something that it strategically leveraged in this deal, according to Boston University's Venkatraman. It's a judicious use of an attractively priced stock as the currency to acquire critical capabilities, he said. Using stock to pay for the acquisition also sat well with Zappos, whose management team apparently requested that, added Gunster's Bates. It "demonstrates that Zappos' management also believe this transaction adds tremendous value to Amazon."
Villanova School of Business 2009 Media Report