• Ad Age, Thursday, July 23, 2009 10:27 AM

Amazon is acquiring Zappos, the 10-year-old online retailer with roots in footwear that's known for its social-media savvy, for about $880 million in cash and stock. Zappos CEO Tony Hsieh announced the acquisition via a tweet to his more than one million followers and his blog, Natalie Zmuda reports.

Zappos will operate as a separate brand; the deal isn't expected to close for several months. "Our vision remains the same: delivering happiness to customers, employees and vendors. We just want to get there faster," according to Hsieh.

Zappos has been lauded for its customer-service-centric approach. It has also attracted attention for its employee relations and culture, including the publication of a "culture book" the size of a phone book. Left in the air is the fate of Zappos' creative-agency review.

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