In its second-largest acquisition, Amazon buys the company for $970 million.
Global financial firm J.P. Morgan Securities Inc., New York, has released "The Winning E-Tailing Program" report by Internet equity analyst Tom Wyman that outlines how brick-and-mortar retailers are approaching online selling and explains why they will dominate most of the online segment. Wyman says retailers that have both an online and offline presence have such an advantage over pure plays that the only-online retailers will not be able to make money in the long run. He also says that as most consumers expect real-world retailers to be e-commerce-enabled, companies are making the moves online. "There is a consensus emerging among brick-and-mortar CEOs that standing on the sidelines is not the right call. Driving business online may build, not destroy, shareholder value," he says. "The virtues of the cyber model offer companies the potential for higher operating margins on less invested capital."