Amazon.com Inc. agreed to buy Quidsi Inc., the owner of Diapers.com and Soap.com, for $500 million in cash, expanding in baby-care products and gaining merchandise- management expertise. Amazon will also assume about $45 million of closely held Quidsiâ€™s debt and similar obligations, according to a statement from the companies today. They expect to close the deal in December.
- Based on the article, what were the sales for Quidsi last year?
- Based on the article, what was the U.S. e-commerce market last year?
- Based on the article, what percent of the U.S. e-commerce market does Quidsi comprise?
- Based on the information given in the article, discuss the accounting treatmentÂ Amazon will record for the Quidsi acquisition. Â Â
Galante, J. and Serena Saitto (2010). Amazon.com Agrees to Buy Diapers.com Owner for $500 Million, Bloomberg.com, November 8. (Retrievable online at http://www.bloomberg.com/news/2010-11-08/amazon-com-agrees-to-buy-diapers-com-owner-for-500-million.html)