Amazon buying fedex.. Whaaat!
- Thread starter Fragiledonthrow
- Start date
The thing about that scenario would be that it would not be anywhere close to blind. A company acquiring anywhere close to that much stock must be publicly disclosed. There has to be a fair bit of time after the disclosed info before they could present that type of deal to even happen (it prevents the big boys from quite as transparently manipulating the market for instant gains). A new spin off IPO also takes a fair bit of time to go through the legal process and clear the SEC. Can it happen yes is it likely to happen, no. Not his style, not going to tie up billions of his dollars long enough to make that scenario very plausible.
The article hits this one point to consider, you would be buying Fedex for what it is worth today, all their business all their customers, not what it would be after Amazon bought them. If Amazon did buy Fedex there are some very big companies that would immediately go to UPS since they won't ship with their competitor and well that right there is Amazons first loss in the deal, they would immediately be X smaller losing these other big fish.
We've seen from other articles, Amazon is large but still not critical mass level of volume that can really turn the tide for either UPS or Fedex. All of a sudden Amazon is not only delivering their stuff (their concern today) but everything else Fedex carries? Why do they want to do that?
To me it seems buying out regionals just for their needs makes more sense and would be cheaper and much easier to get rolling.
We've seen from other articles, Amazon is large but still not critical mass level of volume that can really turn the tide for either UPS or Fedex. All of a sudden Amazon is not only delivering their stuff (their concern today) but everything else Fedex carries? Why do they want to do that?
To me it seems buying out regionals just for their needs makes more sense and would be cheaper and much easier to get rolling.
Fragiledonthrow
Well-Known Member
I'm surprised nobody's considering this bezos guy some how buying out ground contractors and taking over that whole outfit under his wing.. possible or hell no...
59 Dano
I just want to make friends!
I'm sure owning FedEx will go nicely with the airline that half the participants here swore that Amazon would start up and run successfully.
Future
Victory Ride
Ummmmmm....Sesame Street is not a financial show
59 Dano
I just want to make friends!
If Amazon gave a rat's rear end about bad publicity, it would treat its employees better.
oldngray
nowhere special
It's better than watching Cramer.
59 Dano
I just want to make friends!
The guy who wrote the article stated upfront that the scenario is little more than an exercise in thought with no demonstrated merit... and here you come with Vantexan-ish reasoning why it's going to work. ROTFLMAO!
olroadbeech
Happy Verified UPSer
i heard that kayne west is buying fed ex cause it kind of rhymes. it all depends on his gofundme thing.
59 Dano
I just want to make friends!
As if I had a choice!!!
Fascinating idea but not possible. He'd basically be handing money to contractors...and then what? Tell them to go home until he "negotiated with Fred"?
two things to keep in mind beside it's 10K filing. Just recently Amazon bought out a France based delivery company and Bezos wants to be a world wide E commerce retailer.And the other point is that to the frustration of the stockholders Bezos is much more concerned with growth than EPS. In other words be prepared for anything if Jeff Bezos has a hand in it
Why do you think that every shareholder is irritated and putting pressure on companies. Stock goes up, stock goes down there are always shareholder screaming for more, no big Corp gives a
about it. Amazon investors have been dealing with the same thing for years. No clear strategy of actual earnings growth, a multitude based on hope, and numerous acquisitions that lose money "but it is for long term growth" until it is abandoned and written off. The hostile takeover keeps being cited but there is no merit to it. Financially well off companies that are doing well and growing don't get taken over in that fashion. A 12% correction to an overinflated market, hell a 40% correction to overall market doesn't lead to individual companies being taken over it is when the markets are skyrocketing or stagnant and the company is spiraling out of control when that happens.
Still smarting over the annuity debacle?
59 Dano
I just want to make friends!
Still smarting over the annuity debacle?
Tip: Broke people shouldn't try to make financial arguments.
FedExer267
Well-Known Member
Ontrac has the contract to handle Amazons same day delivery on the West Coast. It will be interesting to see how that works. They have been in our parking lot the last few days trying to recruit drivers. Going to be interested to see how many guys walk out.
Read their 10K filing. As i said before it will not happen right away. However industry consolidation is a fact of life. Sometimes it's a friendly merger, sometimes it's proxy fight. Sometimes it's a downturn either in a particular space or the economy in general.Visionary's will do things that on the surface cannot be readily explained and X itself is a mixture of acquired companies. Even Verizon has publicly stated that it has an interest in buying Twitter. Most importantly as a Fedex employee you should certainly know by now that change is the only constant and nothing's binding and that's why in today's economy you have to be prepared for anything both good as well as bad.
Similar threads
