amazon.com management has announced it is offering a $600m buyout of the company’s $1.3 trillion-dollar business in a deal that could fetch the online retailer a tidy $1 billion.
Management says it will buy back the company from its owners for $3.5 billion.
Amazon said the deal would value the company at $2.5 trillion, which is slightly higher than Wall Street estimates.
Amazon will also pay cash and stock dividends of 10 cents a share.
The purchase price is not yet known.
The deal is expected to close this week.
It follows Amazon’s acquisition of the online grocery delivery company Instacart last year, which closed on Wednesday.
The stock rose 1.5 percent in after-hours trading, after analysts on Wall Street had forecast the stock would gain about 1 percent.
Amazon is seeking to make its e-commerce business more competitive by focusing on its own products and lowering the prices it charges for those items.
The company also wants to focus on its ability to provide cloud computing services and other services to its users, according to a recent earnings report.
Amazon has been looking to sell off the company in recent years as it seeks to improve profitability and diversify its offerings.
It also wants a more profitable business to focus its efforts on.
Amazon shares have been down in recent months amid a slowdown in retail sales, with the company reporting $12.4 billion in net income for the fourth quarter.