Question for Why Buy?



“What we want to be is the leading e-commerce destination,” said chairman Jeff Bezos.



“What we do will play out over time, but this is only day one,” Curry said.



“They got nothing out of this purchase that they couldn't have gotten through strategic partnerships,” said James McQuivey, an analyst in online retail strategies with Forrester Research in Cambridge, MA. “Sure, they're assets, but do you need to buy them?”


“When you're swapping Internet stocks, it's sort of like playing with Monopoly money,” McQuivey said. “Maybe [since] they have this excess valuation, they're thinking of ways to use it while they still have it.”


“If we do nothing but price compete, eventually we are going to drive each other into the ground,” McQuivey said. “They should make sure that Junglee technology starts to compare companies on more than just price.”


“That's a narrow view of [the two deals]. Both of these organizations have incredible talent and are just flat out impressive. The value of the Junglee technology is far, far more valuable than simply allowing people to price shop. We want to enrich the customer experience so that they can find almost anything they want to buy on the Net,” said Curry adding that people may be less reluctant to supply credit-card numbers online to a company like, “which is an old company in terms of the life of the Internet.”

Both deals are expected to close by the end of September.

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