Amazon.com to Acquire Joyo.com Limited
SEATTLE & BEIJING--Aug. 19, 2004--Amazon.com
(Nasdaq:AMZN) today announced that it has entered into a definitive
agreement to acquire Joyo.com Limited, a British Virgin Islands
Company, which operates the Joyo.com Web sites -- www.joyo.com and
www.joyo.com.cn -- in cooperation with Chinese subsidiaries and
affiliates. The Joyo.com Web sites are the largest online retailers of
books, music and videos in China.
Founded in 2000, Joyo.com offers customers a wide selection of
books, videos and DVDs, music, software, toys and gifts, among other
products. Through this acquisition, Amazon.com will blend Joyo.com's
expertise in serving the Chinese market with Amazon.com's experience
as one of the world's leading online retailers. This combination will
allow Joyo.com to improve its customer experience and grow its
"Becoming a part of the Amazon family is great news for our
customers," said Lin Shuixing, president of Joyo.com Limited.
"Amazon.com has always put the customer at the center of everything it
does, and we look forward to making Joyo.com even better for our
customers in the time to come."
"This transaction is a recognition of Joyo's accomplishments over
the past four years," said Lei Jun, founder and chairman of Joyo.com
and president of Kingsoft Holdings Limited, the largest shareholder of
Joyo.com. "I am confident that Amazon.com's expertise in global
e-commerce, in combination with Joyo's entrepreneurial management team
and employees, will bring the development of e-commerce and online
customer experience in China to a new level."
Joyo.com will become Amazon.com's seventh global Web site.
Amazon.com's entry into China will allow it to service the more than
80 million consumers already online in China.(1)
"We are very pleased to be entering the Chinese market with
Joyo.com," said Jeff Bezos, founder and CEO of Amazon.com. "In a
relatively short time, Joyo.com has established itself as the leading
online destination for books, music and videos in China, and we're
happy to be part of one of the world's most dynamic markets."
"It is extremely gratifying to have a world-class company like
Amazon.com recognize the value of Joyo.com's opportunity in China,"
said Liu Chuanzhi, chairman of Legend Capital, one of the largest
shareholders of Joyo.com. "We look forward to watching Joyo.com become
even more successful as part of Amazon.com."
The transaction is valued at approximately $75 million, including
approximately $72 million in cash and the assumption of employee stock
options. The transaction is expected to close in the third quarter
2004, although it is subject to customary closing conditions.
Amazon.com does not expect the acquisition to have a significant
impact on net sales or operating profit in third quarter 2004 or
Amazon.com, a Fortune 500 company based in Seattle, opened on the
World Wide Web in July 1995 and today offers Earth's Biggest
Selection. Amazon.com seeks to be Earth's most customer-centric
company, where customers can find and discover anything they might
want to buy online, and endeavors to offer its customers the lowest
possible prices. Amazon.com and other sellers offer millions of unique
new, refurbished and used items in categories such as health and
personal care, jewelry and watches, gourmet food, sports and outdoors,
apparel and accessories, books, music, DVDs, electronics and office,
kids and baby, and home and garden.
Joyo.com was founded in May 2000 and today is the largest online
book, music, video and DVD store in China. In addition, it sells IT
software products, health and beauty products, as well as gifts and
Forward-Looking Statement of Amazon.com
This announcement contains forward-looking statements within the
meaning of Section 27A of the Securities Act of 1933 and Section 21E
of the Securities Exchange Act of 1934. Actual results may differ
significantly from management's expectations. These forward-looking
statements involve risks and uncertainties that include, among others,
risks related to the regulation of Internet and retail companies in
China, the enforceability of contracts necessary for the management
and control of Joyo.com, the reaction of customers and suppliers of
Joyo.com to the transaction, political and economic conditions in
China, potential future losses, competition, retention of key Joyo.com
personnel, disruption of our ongoing business, seasonality, potential
fluctuations in operating results and rate of growth, foreign exchange
rates, management of potential growth, system interruption, consumer
trends, inventory, fulfillment center optimization, limited operating
history, other government regulation and taxation, fraud, and new
business areas. More information about factors that potentially could
affect Amazon.com's financial results is included in Amazon.com's
filings with the Securities and Exchange Commission, including its
Current Report on Form 8-K filed concurrently with this announcement
and its Annual Report on Form 10-K for the year ended December 31,
2003, and all subsequent filings.
(1) Source: China Internet Network Information Center, July 2004