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What are the chances that there is no rational thinking behind this deal? What I mean is, what if some Amazon exec said, "Hey, sounds like a cool project, let's
by KKKKkkkk1 6y ago
What are the chances that there is no rational thinking behind this deal? What I mean is, what if some Amazon exec said, "Hey, sounds like a cool project, let's throw a couple $b their way and write it off as R&D in the worst case?" Or maybe that exec is buddies with a VC who lost a ton of money on Zoox, and the exec decided to bail out the VC at the expense of Amazon shareholders? Or maybe someone at Amazon really likes Jesse Levinson?
- threeseed 6y agoZero chance. Less than zero chance. Companies don't make billion dollar purchases with no due diligence with just one person involved in making the decision. And they don't buy companies just to immediately write them down. Amazon is one of the most successful companies in the world. They didn't get there by acting like children.
- deleted 6y ago[deleted]
- KKKKkkkk1 6y agoCollective decision making and financial due diligence can't always stop you from making dumb decisions. Especially at the most successful companies in the world.
- threeseed 6y agoNobody said that it did. But no company makes billion dollar acquisitions without involving the entire C-suite in particular CFO/Legal and the Board. And they sure as hell don't do it without proper due diligence.
- niyazpk 6y agoIs there a chance that this will turn out to be a bad decision? Sure. Is there a chance that Amazon did not analyze it to death before making the decision? Nope.
- kumarvvr 6y agoGoogle is also one of the most successful companies in the world, yet they have had their share of bad purchases / decisions. Heck, Microsoft bought Nokia, and then completely dismembered it. It's entirely possible for someone in the higher floors in Amazon to convince themselves this is a good fit. Maybe it's a good decision, maybe not. But it's never right to say it's a good decision because a successful company took it.
- bostonpete 6y agoNobody said it was necessarily a good decision. They said it wasn't just the whim of some executive who thought it sounded cool.
- glenngillen 6y agoI've worked at Amazon. I've worked with CorpDev there to try and help facilitate some acquisitions. Based on my experiences there I'd also go with the "less than zero" position. This is not a company that makes any acquisition decisions lightly. Frugality runs deep.
- samfisher83 6y agoMark Zuckerberg did that with Instagram and whatsapp. Most people would say they overpaid for them at the time.
- nl 6y agoThe only people who thought he overpaid at the time were the same people who still can't believe Facebook is a valuable business.
- ummonk 6y ago"And they don't buy companies just to immediately write them down." Yahoo would like a word.
- blisterpeanuts 6y agoThey might be thinking in terms of automated delivery vehicles.
- Infinitesimus 6y agoAmazon doesn't operate like that as a business. They make intentional and calculated decisions especially when $$ is concerned.