Seattle—Could Internet behemoth Amazon be ready to gobble up Net-a-Porter, the luxury website owned by Swiss firm Compagnie Financière Richemont? According to what a source close to the talks told Forbes is that Amazon hopes to assure its share in the luxury online marketplace by purchasing Net-a-Porter.
If Amazon were to acquire Net-a-Porter for an estimated 2 billion euros (about $2.19 billion) it would be the biggest deal Amazon has accomplished, larger than its $1.1 billion acquisition of Twitch and its $1.2 billion purchase of Zappos.
Amazon Issues Denial
However, Amazon today denied it was in any kind of acquisition talks for Net-a-Porter.
Such an acquisition would seem to make sense because Amazon has been unsuccessful with its previous attempts to corner the luxury market online.
CEO Jeff Bezos had told the New York Times in 2012 that Amazon intended to improve its presence in high-fashion retailing sector as the profit margin was much higher for luxury clothes.
“Amazon has been trying to get into the luxury fashion space for quite a few years, and has unfortunately been unsuccessful,” said Dalia Strum, professor at the Fashion Institute of Technology told Luxury Daily.
On the other hand, Net-a-Porter has seen its popularity expand—claiming more than 2.5 million hits per month–even though it has been unprofitable. Net-a-Porter posted sales for the 12 months ending on March 29, 2014 of about $835 million, up almost 23% from the previous year. Losses in that period were more than $20 million, down from the $31 million loss in the 12 months prior.