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Amazon spent $1.65bn on acquisitions in 2018

(Image credit: Image Credit: Ken Wolter / Shutterstock)

Amazon has had a strong 2018 when it comes to mergers and acquisitions. In its latest regulatory filing (opens in new tab), the company reported spending $1.65 billion on acquiring other businesses.

The bulk of the sum went on two startups – smart doorbell maker Ring, and the online pharmacy business PillPack.

At the time of the acquisitions, Amazon did not disclose how much it had cost it, but we now know that Ring set it back $839 million, and PillPack had cost $753 million.

This leaves roughly $57 million for other acquisitions.

Both prices are ‘net of cash acquired’, which means the balance sheets of these two companies were subtracted for the price of the acquisition.

This is the company’s second biggest year when it comes to acquisitions, with only 2017 being stronger. Back then, the company had spent $13 billion to buy Whole Foods Market.

Geekwire says (opens in new tab) that Amazon is going on a shopping spree of sorts. “Amazon has never spent more on acquisitions than it has in the last two years, and it is snapping up companies at a rate not seen since the dot-com era,” it says.

It argues that the acquisitions are the result of a US tax reform, which have improved the M&A conditions in the country.

Another possible motive is competition – Microsoft has also had a strong year, making a few valuable purchases of its own. The two are among the most valuable companies in the world, and Amazon will not let Microsoft ‘run rampant’.

Image Credit: Ken Wolter / Shutterstock

Sead Fadilpašić is a freelance tech writer and journalist with more than 17 years experience writing technology-focussed news, blogs, whitepapers, reviews, and ebooks. And his work has featured in online media outlets from all over the world, including Al Jazeera Balkans (where he was a Multimedia Journalist), Crypto News, TechRadar Pro, and IT Pro Portal, where he has written news and features for over five years. Sead's experience also includes writing for inbound marketing, where he creates technology-based content for clients from London to Singapore. Sead is a HubSpot-certified content creator.