Forbes reported yesterday (March 26) that Amazon is in talks to purchase luxury online retailer Net-a-Porter, in what could be the e-commerce giant's largest acquisition ever.
"The talks could still fall apart, as the negotiations remain in early stages, according to a person familiar with the situation," wrote Forbes' Ryan Mac. "The person also said if a deal is completed, it is likely to be at a lower price than the 2 billion euros, or $2.19 billion, reported by Women's Wear Daily."
Net-a-Porter posted sales of about $835 million for the one-year period ending in March 2014.
Mac adds that since 2012, Amazon has expressed interest in luxury brands, but has failed to incorporate them into its core business, "as customers typically associate Amazon with discounts and fast shipping, not pricey luxury goods."
Net-a-Porter, on the other hand, was founded in 200 by Natalie Massenet. It posted sales for the 12 months ending March 29, 2014 of about $835 million, a year-over-year increase of 23%. Losses for the period were just over $20 million, down from $31 million in the previous year.
In 2009, Amazon paid $1.2 billion to acquire online shoe retailer Zappos.
"If Amazon were to shell out anywhere close to $2 billion for Net-a-Porter, the deal would be the company’s largest acquisition ever," Mac wrote. "Last August, Amazon spent about $1.1 billion in cash on video game streaming company Twitch. In 2009, it spent $1.2 billion to acquire online shoe retailer Zappos."