Amazon buying Zappos

TechCrunch reports that Amazon is buying e-retailer Zappos (via: Shak). In a letter to Zappos' employees the company's CEO Tony Hsieh writes that Zappos will be run as an independent entity. Amazon's press release.

This is a big deal in e-commerce land as Zappos is both large (revenue of more than $1 billion in 2008) and still fast growing. Zappos primarily sells shoes and clothes.

Amazon will pay $807 million in shares for outstanding shares/options and an additional $40 million in cash and restricted stock to employees if the deal is approved.