Hosta has announced plans to sell its business to Amazon Web Services, in a deal that could potentially bring in a record $2 billion in revenue.
The company’s announcement, made Friday, is one of the biggest financial moves in the company’s history.
It’s a move that will have a ripple effect on Amazon’s broader business as the company looks to diversify its businesses.
For years, Hosta’s business was focused on e-books.
But the company found itself in a bind when its e-book business, e-reader platform BookScan, was acquired by Amazon in 2015.
That deal, which was valued at $1.5 billion, required Hosta to shut down its ebook site and lay off tens of thousands of employees.
After the deal was completed, Hostas bookstores and e-readers were shuttered.
A year later, Hosts ebook business began to shrink, and Hosta decided it was time to sell.
It announced in March 2019 that it was buying e-hosting service DigitalOcean for $970 million.
At the time, Hosti said it was looking for an investor that would give the company “the financial flexibility to execute our strategic plan and continue to grow our e-commerce business.”
Amazon has not yet made an official announcement.
In a statement, Hostia CEO Brian Gorman said that the company would retain ownership of its ecommerce and ecommerce platform.
“Hosta has long strived to build a world-class e-publishing platform, one that helps customers find and discover their favorite books, and we are proud to continue that legacy,” Gorman wrote.
Gorman added that the sale would “not affect the hosta platform’s ability to deliver its amazing, personalized e-content to customers and publishers across the globe.”
Hosta also announced that it had agreed to pay $300 million to acquire an unspecified minority stake in DigitalOcean.
Amazon announced plans in June 2020 to sell the company for $2.2 billion, and the deal is expected to close by the end of 2021.
With Hosta gone, Amazon will have $1 billion to spend on its ebooks business.