Amazon's Jeff Bezos Meets with Boxed's Chief Executive to Talk about Possible Acquisition
SEATTLE, WA — Amazon may have interrupted Kroger’s efforts to acquire Boxed.com according to the NY Post.
In the last two weeks, The Post’s sources reported that Kroger made an offer to acquire the meal kit company for between $300 million and $400 million, but Boxed rejected the offer just days before a scheduled visit to Amazon headquarters—possibly because the meal kit provider is holding out for a higher offer. A Forbes report published earlier this month noted that Boxed may be targeting a $500 million mark after receiving a $470 million valuation last year.
Amazon invited Boxed’s CEO Chieh Huang to meet at with Amazon CEO Jeff Bezos to discuss a possible acquisition sources with knowledge of the trip and discussion informed The Post. The meeting was reportedly to take place on Wednesday, January 24th, at Amazon’s Seattle headquarters.
The Post speculated that a partnership between Boxed and Kroger would aid Kroger as it attempts to bolster its online presence and offset the impact of Amazon’s partnership with Whole Foods.
Although Kroger has also been in talks with Alibaba, as we previously reported, this strategic move on Amazon's part could put Kroger and other brick-and-mortar stores looking to expand into e-commerce at a disadvantage. If Amazon acquires Boxed, The Post speculated, the acquisition could threaten Costco’s customer base. Boxed, like Costco, specializes in bulk sales. With Amazon’s backing, Boxed could further push the e-commerce trend, having gained foothold in every aspect of the grocery market—from health-conscious Whole Foods to convenience-oriented Boxed.
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