What Did Amazon Do This Week? - 26-02-2023 [+30 LINKS]
AMAZON OFFICIALLY OWNS ONE MEDICAL
Amazon’s acquisition of One Medical (parent company 1Life Healthcare) for $3.9 billion has gone through. The FTC chose not to challenge the acquisition and went the “close the deal at your own risk” route, which means the FTC can challenge the deal later should they choose to. The OM deal was never ‘the one’ to challenge, Amazon could do a lot of good in the healthcare sector, which everyone, bar big pharma, believe is ripe for disruption. Healthcare in the US needs more competition and is getting it in various ways, from manufacturing to distribution. Amazon can offer both and will provide millions with additional options that will leave money in Americans’ pockets for them to spend on other things…on Amazon.
OM currently has +200 medical offices and +800,000 members, this will not be an overnight sensation, but a fast to learn from and innovate in if Amazon is smart. Alternatively, it could end up being another Whole Foods scenario if Amazon doesn’t focus enough and disrupt the market fast enough.
Health is hot right now. Amazon wants in. Since Feb 1 Google Cloud is partnering with Redox, Walmart Health named Brody McConnell as its new director of innovations, GE Healthcare is developing. anew platform for patient data and operations, CVS is issuing bonds to help finance $8B acquisition of Signify Health, GE HealthCare agreed to by Caption Health, Google Ventures invested $28.1 million into Firsthand (mental health startup), and Microsoft is partnering with VINBrain in Vietnam for AI-based healthcare services.
Healthcare is an important data point that Amazon wants to get a handle on, alongside the trillion-dollar health market to bolster profits and grow in different arenas. Amazon has a choppy past in this area, so a good strategy is to buy well and push hard. The price for OM/Amazon is currently $144 per Amazon’s site, which will be music to millions of Prime (and non-Prime) subscribers’ ears. Expect much more movement in this industry and arena from Amazon’s immediate (and distant) competitor set.
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