Amazon and Zappos made a deal today that would pay the Zappos share holders millions of dollars. So far the exact details haven’t been released but the Wall Street Journal is reporting that this acquisition wasn’t as simple as you’d think:

Zappos’ management insisted on receiving only Amazon stock to pay for their business, which has grown into the largest online shoe retailer. The management viewed Amazon’s shares as undervalued.

So, apparently did Amazon, which initially insisted on paying only cash for the transaction. But Zappos won out, and it secured an all-stock transaction.

Both had a good nose for the market. Amazon shares are up 16.5% since mid-May, the start of the 45-day period over which Amazon averaged the shares it would award Zappos.

So far, reports suggest that the deal between these two online shopping companies is worth around 850 million dollars.

Amazon already owns a shoe store called There’s no word yet whether Zappos will be affiliated, or even integrated into Amazon’s already thriving shoe business. Zappos, which was started in 1995, is also a shoe based online retailer, which features 4-5 day shipping on their products. They also currently offer a refund guarantee for up to a year.