after it was rumored to be in the game earlier this month, it should come as no great surprise that One Medical has found a new home. After a scorching public offering, the value of the US consumer health care and technology company had fallen below its IPO price, and it was a clear target for the right buyer.
But after CVS left the table, it wasn’t a healthcare facility that picked up a company’s former treasure, nor was it turned into a platform game by private equity. Instead, Amazon picked it up in a deal worth about $3.9 billion. At $18 a share, One Medical exits the public markets with a price tag higher than its IPO — sort of a win for the unprofitable company.
What are we to make of the Amazon deal, though? We’ve covered the news about londonbusinessblog.com, and londonbusinessblog.com+ has been digging into what the smaller company could offer its new parent company, so we got together to share a few more thoughts on the matter.
Walter Thompson: Amazon is the black hole created by the death of Main Street retail
One Medical’s CEO said Amazon’s acquisition of his company is “an opportunity to transform healthcare and improve outcomes.” But I interpreted the $3.9 billion pending purchase as a bright, blinking sign that the world’s largest retailer is not afraid of oversight or regulatory intervention. Amazon has gone beyond monetization: Right now, the company largely exists to generate additional mass.