Timeline of Amazon’s Biggest Acquisitions

How did a small online bookstore become the fourth most valuable company in the world – worth a whopping $2.2 trillion? Amazon has slowly grown from a small e-commerce company into robotics, media, smart homes, web services, healthcare, and now, AI. That story and strategy come into clear focus when studying its acquisitions over the years. Amazon is a living case study of just how powerful strategic acquisitions can be.

1998: IMDb – Moving Beyond Books ($55 Million)

Amazon wanted to expand beyond just selling books. The obvious first move? DVDs & CDs—media products that were logistically straightforward to package and ship. But they needed distribution – so Amazon bought the leading website for movie fans and critics IMDb. Amazon simply added a link to buy the DVD on each movie’s profile. Now IMDb’s dedicated movie fans were one click away from purchasing DVDs with Amazon. This acquisition also laid the groundwork for Amazon Prime Video – with IMDb’s metadata serving as the backbone for curating, recommending, and cataloging their eventual streaming services.

2004: Joyo – Expanding to China ($75 Million)

China is one of the most valuable markets in the world but notoriously difficult to break into. Amazon saw the acquisition as a shortcut into the market. Joyo was the perfect target. They were a well-established e-commerce business with a strong brand and logistical network. The acquisition had its setbacks due to intense competition, from Alibaba and JD.com, and complex legal challenges leading to the eventual withdrawal from the Chinese market. However, it was a critical experience that informed Amazon’s future international strategies.

2008: Audible – A New Chapter in Digital Products ($300 Million)

In 2007, Amazon launched the Kindle, changing the way people consumed books digitally. A year later, the purchase of Audible proved to be the perfect companion. By acquiring Audible, Amazon secured market dominance in the rapidly growing audiobook market and became the one-stop shop for digital reading and listening. The acquisition wasn’t just about capturing the audiobook market; it was about changing the way people consumed books and positioning Amazon as an indispensable part of their daily lives.

2009: Zappos — More than Shoes ($1.2 Billion)

Amazon was struggling to get a foothold in the fashion and footwear market. With challenges like: sizing, style, and most importantly, returns. Zappos was a market leader in the category due to offers like free shipping (both ways), returns, and 24/7 customer service. The acquisition was more than shoes. It was about Zappos’ expertise in customer service. The influence of Zappos can still be seen in Amazon’s operations today, from its hassle-free returns to delivering “customer delight” across product categories. Learn more about the acquisition process for e-commerce businesses here.

2012: Kiva Systems – Smarter Warehouses ($775 Million)

With more customers buying products online, Amazon needed to deliver more packages more efficiently. This meant streamlining fulfillment centers to keep up with rapidly increasing order volumes. Fulfillment centers were, and continue to be, one of Amazon’s biggest expenses. By automating operations, Amazon could cut labor costs and streamline inefficiencies. By acquiring Kiva Systems, Amazon gained exclusive access to the technology and denied its competitors a crucial advantage. In 2024, there are 750,000 robots across its operations, matching nearly half of its human workforce. This acquisition was critical to Amazon delivering on its promises of two-day Prime shipping and, later, same-day shipping.

2014: Twitch – Live Streaming and Gaming ($970 Million)

Amazon did not have a social media platform like Google or Facebook. Livestreaming in gaming was exploding in popularity. Acquiring Twitch gave Amazon access to a young, tech-savvy audience and a rapidly growing market. Amazon integrated Twitch into its ecosystem by offering Prime members exclusive perks and connecting Twitch’s users to its suite of products. Today, Twitch is central to Amazon’s digital entertainment strategy, driving advertising revenue and solidifying Amazon’s position in the gaming industry.

2017: Whole Foods – Physical Retail and Digital Groceries ($13.7 Billion)

This was Amazon’s biggest move into brick-and-mortar retail. Whole Foods brought Amazon access to a nationwide network of physical stores, providing a foundation to merge online and offline shopping. Amazon quickly integrated Whole Foods into its ecosystem—offering Prime-exclusive discounts and launching its delivery service, Amazon Fresh. Entering the grocery sector further expanded Amazon’s supply chain expertise and increased its market presence. The acquisition allowed Amazon to leverage its logistics network, optimize store operations, and cater to the growing demand for fresh, organic produce delivered straight to customers’ doors.

2018: Ring — Smart Homes Get Smarter ($1 Billion)

Amazon wants to corner the smart home market. With Ring, Amazon gained a strong foothold in home security, complementing its Alexa-powered Echo devices. With Ring and Alexa, customers can manage their security systems through voice commands and integrate video feeds with Amazon’s smart displays. This acquisition further builds out Amazon’s ecosystem of connected devices and increases its presence in the Internet of Things (IoT) market. It also deepens the relationship customers have with Amazon by offering a security system that matches a modern lifestyle.

2018: PillPack — An Online Pharmacy ($753 Million)

This acquisition gave Amazon pharmacy licenses in all 50 U.S. states — Amazon was poised to disrupt the healthcare industry. PillPack is an online pharmacy known for pre-sorting and delivering medication. PillPack’s streamlined prescription management aligned perfectly with Amazon’s logistics expertise, forming the foundation for Amazon Pharmacy launched in 2020. PillPack is central to Amazon’s healthcare strategy, offering convenient medication delivery and price transparency, and helping Amazon expand into the growing online pharmacy market.

2019: Eero – Strengthening Smart Home Connectivity ($97 Million)

Everyone has a room in their house without WiFi – and that’s a big problem for smart devices. Eero’s mesh Wi-Fi technology eliminates dead zones and creates reliable internet coverage throughout an entire home. By acquiring Eero, Amazon both solved this issue and expanded its presence in the hardware space— aligning with its mission to provide seamless connectivity for its growing suite of IoT devices, including Alexa-enabled Echo products and Ring security systems.

2020: Zoox – Driving Autonomous Vehicle ($1.2 Billion)

Waymo, Google, Uber, and Tesla have all been duking it out for dominance in the autonomous driving space—with this acquisition, Amazon threw its hat in the ring. Zoox’s mission is to develop fully autonomous, zero-emissions vehicles. For Amazon, the acquisition offers potential in two key areas: improving last-mile delivery logistics and establishing a foothold in the ride-hailing market. Zoox’s autonomous vehicle technology could revolutionize package delivery by introducing driverless delivery vehicles, reducing costs, and increasing efficiency.

2022: MGM Studios – Doubling Down on Media ($8.5 Billion)

The streaming war is a battle for content. By picking up MGM, Amazon Prime scooped up over 4,000 films and 17,000 TV episodes, including iconic franchises like James Bond and Rocky. The acquisition brought a massive library of intellectual property (IP) to fuel original content production needed to compete against streaming rivals like Netflix and Disney+. This move allowed Amazon to double down on its media ambitions and ensure a steady stream of exclusive titles to attract and retain Prime subscribers.

2023: One Medical – Expanding into Primary Care ($3.9 Billion

In the US, healthcare is a $4.8 trillion market—and Amazon wants a piece of it. One Medical is a membership-based primary care provider—combining in-person care with telehealth services. This acquisition marked a major step in Amazon’s healthcare strategy, giving the company access to One Medical’s network of over 200 clinics and a digital health platform designed to streamline patient care. The move highlights Amazon’s ambition to disrupt the healthcare industry, positioning it to offer holistic, tech-driven healthcare solutions.

In Conclusion

Amazon’s acquisitions are a playbook for how to go from bookshop to juggernaut. Each purchase shows an expansion into a new region, product, or niche. However, it’s all unified under a clear vision for the company—into areas that align with what Amazon is now known for: e-commerce, smart homes, operations, digital media, healthcare, and now AI. It’s a series of high-stakes risks that have led to Amazon being indispensable in the lives of people across the world—and what it takes to build a $2 trillion business.

If you’re an e-commerce business owner contemplating an exit, wondering what your business could be worth or simply considering your options, please do not hesitate to contact the leading M&A advisory for online businesses, FE International, for a free valuation.