The Atlantic – June 16, 2017
Written by Robinson Meyer
On Friday morning, Amazon announced it was buying Whole Foods Market for more than $13 billion. About an hour later, Amazon’s stock had risen by about 3 percent, adding $14 billion to its value.
Amazon basically bought the country’s sixth-largest grocery store for free.
As the financial reporter Ben Walsh pointed out on Twitter, this is the opposite of what’s supposed to happen—normally, the acquiring company’s share price falls after a major purchase—and it suggests that investors now believe something odd is going on with Amazon. What could it be? …
The Institute for Local Self-Reliance, a nonpartisan advocacy group, has also criticized Amazon for this alleged anticompetitive behavior. “By controlling this critical infrastructure, Amazon both competes with other companies and sets the terms by which these same rivals can reach the market. Locally owned retailers and independent manufacturers have been among the hardest hit,” said a recent report from the group.