What started as an online bookstore became the world’s largest go-to online shopping site! eCommerce giant Amazon has garnered itself a widely appreciated reputation around the world.
After securing remarkable success, the company decided to sprawl into the business world and got its hands on the most influential companies out there. Amazon has claimed over 40 companies and has over 125 subsidiaries to date.
This article is about the top 15 companies owned by Amazon. Most of the companies are almost as famous as Amazon itself!
Amazon’s History
Great ideas are birthed in the most awkward of places. Jeff Bezos, the founder of Amazon, brainstormed the idea in his garage in 1994 and decided to fund $10,000 out of his own pocket to give birth to his ambitious project. At that time, Bezos was a Wall Street hedge fund executive.
Despite receiving significant dissuasion from his peers and people, Bezos was determined to make his dreams come true.
Bezos had two names in mind for his new start-up: Cadabra and Amazon. But the former name was subject to confusion with Cadaver.
Amazon started as an online bookstore, and its only competition at the time were local bookstores and, of course, Barnes and Noble.
But in 26 years, Amazon became an everything store! The company generated a whopping revenue of $469.8 billion in 2021 alone. It also has a net income of 33.36 billion US dollars. Now its competition is almost every other company vested in the booming sector of eCommerce.
P.S.: Jeff Bezos also had a surprising career path change during his time at Princeton. He was ambitious to pursue math and physics as his majors until he realized he couldn’t solve an equation that his peers were able to do so easily.
Top 15 Amazon Subsidiaries
IMDb
- Date of Acquisition: 1998
- Price of Acquisition: 55 million USD
Internet Movie Data base is a cult favorite and reliable website that offers movie/television show ratings, celebrity information, and a lot more. Their database covers almost every aspect of the entertainment industry.
To be honest, this came to me as a surprise! I had no idea Amazon had extended its roots to influential companies like IMDb!
IMDb was one of the earliest acquisitions of Amazon. 8 years after Amazon gained its ownership, it gave rise to Amazon Video.
Goodreads
- Date of Acquisition: 2003
- Price of Acquisition: 150 million USD
Amazon started as an online bookstore, so it does not come as a surprise that they’d want to either eliminate the competition or, better yet, own it!
I’ve been using Goodreads for such a long time, and I was oblivious to the fact that Amazon is its parent company. The website and app are like the IMDb of books! It caters to a wide community of avid book readers and allows them to rate the books they’ve read.
The people can follow each other and grow their circle of friends so that like-minded book reviewers can connect with each other.
Whole Foods Market
- Date of Acquisition: 2017
- Price of Acquisition: 13.7 billion USD
The acquisition of Whole Foods Market marked Amazon’s fresh entry into the brick-and-mortar industry. Considering Amazon had to pay a whopping price to claim its ownership, it stands as one of the largest acquisitions of Amazon.
Whole Foods Market is an American multinational chain of organic grocery stores. It has circa 500 plus stores based in the USA, Canada, and the UK.
Its new CEO, Jason Buechel, was appointed in September 2022, and he plans to open at least 50 new physical stores.
Alexa
- Date of Acquisition: 2013
- Price of Acquisition: 250 million USD
If you’d ask me, I deem Alexa as my virtual buddy. This virtual assistant technology is coupled with a polish speech synthesizer (better known as Ivona).
This cloud-based voice service initiates voice interaction and command. It can run multiple virtual errands for you, such as setting your alarm, playing your favorite music, or providing real-time news. All you have to do is ask Alexa!
It is often confused with Alexa internet, which was also bought by Amazon in 1999. It was primarily purchased because Amazon wanted to claim its domain so it could plan future ventures for it in the upcoming years.
For more information on Alexa internet and Voice Service Alexa, we’d recommend you to go through this article.
Twitch Interactive
- Date of Acquisition: 2014
- Price of Acquisition: 970 million USD
This live-streaming service was launched in 2011, and Amazon acquired it only 3 years after its birth. If you’re a video gamer or e-sports fanatic, you probably know about this platform.
Many users use it to stream their game live on Twitch’s platform, during which other online members can interact with the player.
Twitch gained considerable popularity before Amazon set its eyes on it. It had the 4th highest peak internet traffic at the time.
Twitch now attracts 140 million users on a monthly basis.
Kiva Systems (Amazon Robotics)
- Date of Acquisition: 2012
- Price of Acquisition: 775 million USD
This company came to life in 2003 and developed mobile robotic fulfillment systems. Soon, companies like Walgreens, GAP, Crate & Barrel, and Office Depot started to pursue Kiva Systems’ services.
Then came in eCommerce giant Amazon and claimed the company. Its warehouses and compact retrieving systems are now exclusive to Amazon.
Zappos
- Date of Acquisition: 2009
- Price of Acquisition: 1.2 billion USD
This American online clothing and shoe retailer gained widespread popularity before Amazon took over it.
It is based in Las Vegas – Nevada, and was founded in 1999 by Nick Swinmurn. Its former name is shoesite.com.
Zappos became subject to quite a controversy as the employees and laborers complained of unethical working conditions.
The brand sells higher quality products than those you’ll find on Amazon, which is why it is the retailer of choice for many online customers.
Pillpack, Inc
- Date of Acquisition: 2018
- Price of Acquisition: 753 million USD
Pillpack was launched in 2013 as an online pharmacy store. It deals in over-the-counter and prescription pills. The products are delivered free of charge.
The company can fill and sort your medications without you having to visit a physical pharmacy.
The acquisition of Pillpack set a watermark for Amazon’s entry into the Pharmaceutical industry.
MGM Holdings
- Date of Acquisition: 2021
- Price of Acquisition: 8.45 billion USD
So this one came as a huge surprise to me. I had no idea that Amazon would purchase Metro Goldwyn Mayer!
MGM is an entertainment company established way back in 1924. Remember the appearance of that roaring lion behind the film emblem in looney toons? Yeah, that’s MGM! It has yielded timeless movies, TV shows, and music to the entertainment industry – take Wizard of Oz, James Bond, and Rocky as notable examples.
This is one of the recent acquisitions of Amazon, and they paid a hefty amount to claim the name. It is only second to Whole Foods Market in terms of acquisition cost.
One Medical
- Date of Acquisition: 2022
- Price of Acquisition: 3.9 billion USD
With over 70 clinics in the United States, One Medical stands as a leading primary healthcare company headquartered in San Francisco, California.
One Medical offers apt telehealth and in-clinic services. It is the third most expensive acquisition deal for Amazon amongst its subsidiary pool.
Souq
- Date of Acquisition: 2017
- Price of Acquisition: 580 million USD
You can think of Souq as the Amazon of the Middle East; it was undoubtedly the largest eCommerce platform in the region. Souq hosts a large eCommerce database and boasted a variety of 30 million products at its launch.
Souq is also known as Amazon.ae and Amazon.sa in Saudi Arabia.
Audible
- Date of Acquisition: 2008
- Price of Acquisition: 300 million USD
If you’re into audiobooks, you probably know about Audible. To establish its supremacy in the ebooks and podcast industry, the idea of acquiring Audible came to Amazon naturally.
Audible was founded in 1995 by Don Katz and hosts 300 million active users on a monthly basis!
Zoox
- Date of Acquisition: 2020
- Price of Acquisition: circa 1.2 billion USD
Zoox is an autonomous vehicle manufacturer founded in 2014. The concept is quite intriguing; click here to learn more about it.
The company is also setting ambitious goals and plans to launch a ride-hailing service very soon, according to its website.
Junglee
- Date of Acquisition: 1998
- Price of Acquisition: 250 million USD
Junglee is now known as Amazon.in. It is now an Indian eCommerce company that caters to a wide customer base.
Ring
- Date of Acquisition: 2018
- Price of Acquisition: 839 million USD
As the name suggests, Ring is a wifi-enabled doorbell system. Amazon decided to purchase the company when the need for security cameras and smart home security solutions escalated rapidly.
It acts as a CCTV system for your home; you can live stream your home’s situation in real-time.
Ask Away: The FAQ Section
Why is it called Amazon?
The name has two associations: first with the letter (the first alphabet in order) and second because of the company’s affiliation with the South American river.
How many companies does Amazon own?
Amazon owns circa 40 companies and has 128 subsidiaries.
How many employees does Amazon have?
As of the first quarter of 2022, Amazon had 162 million employees.
How much does Amazon pay its employees?
On average, an Amazon employee would make approximately 50,000 US dollars per year.
