Amazon CEO Jeff Bezos could break up his own company before regulators do so themselves, Atlantic writer Franklin Foer predicts.
Foer, who wrote the Atlantic’s November cover story entitled “Jeff Bezos’s Master Plan,” said in an interview Tuesday on CNBC’s “Squawk Box” that people close to the CEO believe spinning off Amazon Web Services from the e-commerce business “would be the obvious thing for [Bezos] to do in the face of this.”
“I think that eventually Bezos, who is seeing around corners, is going to break up his own company,” Foer said. “AWS exists as its own fantastically profitable business. There’s no reason that it needs to be connected to Amazon the e-retailer. And as he looks at what’s happening in politics, where there’s this increasing bipartisan consensus that Big Tech is a problem, I’m pretty sure he’s going to say, ‘OK fine.’”
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AWS accounted for 13% of Amazon’s total revenue in the second quarter of 2019, but a whopping 52% of its $3.1 billion in operating income for the quarter.
Link to the rest at CNBC
PG says antitrust investigations can and have hamstrung lots of large, successful companies, even if they don’t result in sanctions.
The antitrust investigations and suits against Microsoft in 1994 and 1998 arguably prevented MS from exploiting internet opportunities that were taken by others. Google Chrome displaced Internet Explorer as one example. Ironically, during its early years, Microsoft benefited from antitrust lawsuits against IBM in the 1980’s.
If Bezos can avoid serious antitrust actions by voluntarily breaking up the company, the minified-Amazons might continue the company’s success free of any throttling constraints.