Amazon to Woot it Up
one item per day at discount
price, announced yesterday that
it had agreed to be acquired
The company, which will continue to operate from its headquarters
in Carollton, TX, follows previous acquisitions, including Audible.com and
Zappos, that Amazon has pretty much left to run on their own.
In his usual tongue-in-cheek style, CEO Matt Rutledge wrote to his employees, “We
plan to continue to run Woot the way we have always run Woot — with a wall
of ideas and a dartboard. From a practical point of view, it will be as if
we are simply adding one person to the organizational hierarchy, except that
one person will just happen to be a billion-dollar company that could buy and
sell each and every one of you like you were office furniture.”
In a similar vein, Mr. Rutledge added, “We
think now is the right time to join with Amazon because, quite simply, every
company that becomes a subsidiary gets two free downloads until the end of
July, and we very much need that new thing with Trent Reznor’s wife on
Woot is a combination online store and community site that
focuses on selling a single item a day at cheap prices. It originally started
out in 2004 as “an
employee-store slash market-testing type of place for an electronics distributor,” but
eventually became a viable retail business on its own. The company also operates
other sites, including kids.woot, shirt.woot, sellout.woot and wine.woot.
of the deal were not disclosed.
Discussion Questions: What do you think Amazon is looking to gain with
its purchase of Woot? Do you see aspects of the Woot model that you believe
would apply to other areas of Amazon’s business?
[Editor’s Note] In what is probably a happy coincidence, Woot is selling an Amazon Kindle with 6″ screen for $149 ($5 shipping) today. The same item on Amazon goes for $189 (free shipping).
- Amazon, Woot, and
You: But Mostly Woot – Woot
- Woot FAQ: a discussion of ill-advised efficiencies, failed idealism, and trampled
dreams. – Woot