Starmazon or Amabucks
Why doesnât Amazon acquire Starbucks?
Starbucks has one thing Amazon doesnât have â over 30,000 physical locations. Sure, Amazon owns Whole Foods, which has about 350 physical locations, but they are large food distribution facilities (e.g. grocery stores) rather than community meeting spaces (e.g. coffee shops).
Amazonâs market cap is $930b. Starbucksâ market cap is $104b. Thatâs roughly a 90% / 10% merger assuming no premium for Starbucks. Even with a huge premium, itâs still less than an 85% / 15% split.
Oh, and they are both headquartered in Seattle.
Wouldnât it be interesting if the primary retail point of presence in the US suddenly became Amabucks?
Iâm sure thereâs a massive analysis of this somewhere in a corp dev department at Amazon or at investment banks pitching Amazon on the deal.
Iâm trying to decide if I like the name Starmazon better.