Wal-Mart Stores Inc WMT 5.75% announced Friday its acquisition of apparel brand Bonobos for $310 million in cash, but the transaction was largely overshadowed by rival Amazon.com, Inc. AMZN 3.09%’s simultaneous purchase of Whole Foods Market, Inc. WFM 26.97%.
Always one step ahead and ever the big brother, Amazon beat Walmart to its merger announcement by nine minutes, and by that time, Walmart stock had already plunged 4 percent. It continued lower until it hit a daily nadir at 6.8 percent.
The e-commerce giant has widened its technology scope through a number of recent acquisitions, including:
- com, an online retail company, on March 28. Terms were not disclosed.
- Thinkbox Software on March 6. Terms were not disclosed.
- Curse, a video game company, on 16. Terms were not disclosed.
Meanwhile, Walmart’s recent merger plays include:
- com, an e-commerce company, for $3 billion Aug. 8.
- Moosejaw, a clothing company, for $51 million on 15.
- ModCloth’s assets and operations on March 17. Terms were not disclosed.
It appears Walmart’s emphasis on clothing and e-commerce does little to impress investors against Amazon’s technological gains and expansion into new industries, such as its latest grocery play.
At the time of publication, Walmart was trading down 6.3 percent and Amazon up 3.3 percent off the open.