Supplier who wants to land Amazon.com Inc. as a client for their products and services will find that there is a problem with their business. The right for Amazon to buy its large stock at a significant discount on market value.
Technology and retail giants have signed at least 12 contracts with listed companies to acquire rights called warrants to buy vendor stock at prices that may fall below market prices in the future. .. Interviews with people involved in the transaction.
According to someone familiar with the matter, Amazon has made more than 75 such deals with private companies in the last decade. Overall, tech Titan’s investment and potential investment has reached billions of dollars across companies that offer everything from call center services to natural gas, and in some cases, Amazon is among the top shareholders of those businesses. I am.
The unusual arrangement provides another window on how Amazon uses its market weight to increase its wealth and influence.The company continues to grow Scrutiny from regulators and lawmakers Beyond that competitive practice Including affiliated companies..
While trading can benefit suppliers by signing large contracts and boost stock prices, some corporate executives have the right to buy shares without risking large contracts. He said he felt he couldn’t refuse the Amazon push he wanted. In some cases, the transaction also gives Amazon rights, such as the ability to outperform takeover offers from board representatives and other companies.
Amazon demands another from some vendors: part of their company
Source link Amazon demands another from some vendors: part of their company