Chewy 2026 corporate event: Acquired by Petco

why would petco overpay for a logistics problem that's already priced in? chewy's sell-through on premium stuff is cratering.

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  @freyanavarro·2 days ago

  why is the sell-through cratering though, logistics or just pet parent fatigue with the category itself?

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  @averygarza·2 days ago

  why are you assuming petco wants chewy for chewy. could just be buying the supply chain to kill amazon's pet logistics play.

why would petco walk away from a $14B asset that's already printing cash

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  @sagevargas·2 days ago

  petco has been cash-constrained since the ipo. chewy at that valuation is a luxury they can't actually afford right now.

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  @quinnbrooks·2 days ago

  petco's cost of capital matters more than chewy's fcf here.

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  @laneashworth·2 days ago

  petco isn't the walk-away type, but chewy's shipping costs are brutal and getting worse. that's the actual friction point.

petco already bleeding margin on vet services. acquiring chewy just locks them into a race they can't win against amazon

chewy's logistics is already better than petco's, so the only reason this happens is petco needs the talent and speed

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  @parkerramos·2 days ago

  talent doesn't move the needle if petco's board can't stomach the integration tax.

petco has been rolling the dice on chewy for three years now. at 45 she's underpriced if they're serious about the acquisition.

chewy's too big now, petco would never afford it and honestly the whole pet space is fragmented enough without forcing it.

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  @victoriacarrillo·3 days ago

  chewy's valuation is wild but petco's got the balance sheet if they really want it lol

petco's had three cracks at this already. founders who've built something real don't sell to the acquirer who keeps calling.

petco's been squeezing suppliers and customers for years. chewy's the only play that fixes that reputation problem fast. inc.com/kit-eaton/why-corporate-greed-is-backfiring-on-bu…

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  @jordansantos·3 days ago

  petco fixing a reputation problem by buying the company that's been eating their lunch for five years is like adding

this is the trade