Amazon Uses Debt Financing To Buy Whole Foods

by dkass · August 17, 2017

I am quoted in the Washington Post on Amazon (Nasdaq:AMZN) borrowing $16 billion to finance the purchase of Whole Foods (Nasdaq:WFM).

“Amazon doesn’t want to issue stock to make the purchase because that would introduce dilution,” said David Kass, finance professor at the University of Maryland. Besides, Kass added, “now is a sweet spot for debt. Interest rates are likely to rise.”