The $19.9 billion sale of its consumer products business to Amazon will make Amazon the largest private-equity firm in the world, according to the Bloomberg Billionaires Index.
That’s up from a previous estimate of $15.4 billion, the data showed.
The company is also betting on its coffee business, which is growing rapidly in the U.S. as consumers shift away from coffee and towards tea.
The $5.3 billion sale also marks the first time Amazon has spent cash on its e-commerce businesses since 2010, when it purchased e-tailer Flipkart for $1.1 billion.
The deal also means Amazon has a larger balance sheet, which it will use to fund its growing online retail businesses, said Jeff Bezos, Amazon’s chief executive officer.
“It’s not just a big increase in cash,” he said.
“It’s a massive increase in assets, and we’re able to make this money back.”
The deal will enable Amazon to take a $3 billion chargeoff from its debt and use the proceeds to pay down its debt.
The company will pay $3.5 billion to the Federal Reserve, the second-largest amount of interest it has ever paid on its debt, the report showed.
It will also use the cash to pay back $4 billion to its shareholders, who will receive dividends of $0.05 per share, a small amount compared with the more typical $1 to $2 per share that most large companies pay their shareholders.
Investors have been encouraged by the cash-rich valuation of Amazon, which has been underperforming peers in the past.
In the fourth quarter, it lost money on sales of $19 million, which was the fourth-worst quarterly performance since the firm was founded in 2004.
Amazon posted its worst-ever quarterly net loss of $1 billion for the third quarter of the year.
The deal also gives Amazon a huge asset-backed loan of $3 million, or about 20% of the $5 billion it plans to borrow to build its new headquarters.
That loan, which will be repaid with interest over 30 years, is the largest in Amazon’s history, the company said.
The move to sell off its consumer goods business comes as Amazon is trying to reinvent itself and expand its online services.
It recently announced it will launch a new e-book-buying platform called Kindle Direct Publishing that will allow consumers to buy books and other digital products from Amazon.
That platform will be available in the next few weeks, Amazon said.