The Company That Ate America

Amazon.com Inc. has announced that it will acquire Whole Foods Market Inc. for $13.7 billion, which represents a 27% premium for shareholders of Whole Foods. This is a stunning foray into the $800 billion grocery industry, and a massive shot over the bow of its competitors Walmart, Target, and Kroger, gouging $32 billion out of their market capital in only a few hours. Pundits will write about how Amazon will introduce new technologies and distribution to improve the performance of Whole Foods. Other analysts will joyfully and glibly quote Joseph Schumpeter, the Austro-Hungarian economist and later Harvard professor who gave

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