As of May 2020, Amazon has $50 billion dollars in cash or cash equivalents.
Yes Amazon needs to save some of that cash for emergencies or future economic downturn, etc.
But it can use some of it and mix it with stock to takeover Pinterest and Etsy to create a search + printables + online store powerhouse.
As of October 2020, Etsy has a market cap of $16 billion.
Pinterest has a market cap of $26 billion.
That’s about $42 billion in combined market cap.
It would take almost all of the cash that Amazon has in order to buy them with cash outright.
Amazon could also do an all-stock takeover in order to save its cash.
But Elon Musk said that all-stock takeovers were stupid because the stock of the parent company is going to be worth more in the future and it wouldn’t be a good deal now to use it all.
Perhaps Google or Microsoft, with their more than $100 billion cash hoard, should think about taking over Etsy and Pinterest?
Either way, the idea is to pool together the big data, search data, information systems, tech, customer base, etc. from both smaller companies and synergize them into whatever company that ends up taking them over.
Etsy’s printables and consumer knick knacks business, along with Pinterest’s graphic search and sales engine business combined with Amazon’s shipping and distribution, data, systems, cloud, etc. would create a force to be reckoned with.
It would create a huge search and sales engine powerhouse.
“It’ll be huge!”