Amazon Reportedly Requiring Vendors to Sell Company Shares at Potentially Discounted Prices

It has struck more than 75 of these deals within the last decade, amounting to billions in investments.

Tech 
10,749 Hypes 11 Comments

While being able to sell your items on Amazon may be a big opportunity to grow your business, reports have now surfaced suggesting that the price you’ll have to pay is to allow the company to purchase some of your company’s stock at a potentially much lower price than what it’s worth.

According to a new report from the Wall Street Journal, Jeff Bezos‘ company has long been forcing some of its suppliers and vendors to agree in their contracts to give Amazon the right — called warrants — to purchase shares in them at potentially much-discounted prices below market value. Just in the past decade alone, the e-commerce giant has struck more than 75 of these deals with private companies, which span across industries from natural gas to call centers, amounting to stakes worth billions of dollars. In some cases, the tech giant is even among those companies’ top shareholders, giving it access to board representation and the power to prevent acquisitions from outside buyers and instead prioritize its own offers.

It’s not the first practice Bezos and his company has undertaken to curb competition through leveraging its massive market dominance. The WSJ also points out that Amazon often uses its might to pressure contracting partners in one of its businesses to sign on to other services it provides, learns about tech start-ups through its own venture capital fund, and manufactures cheaper Amazon-branded products to compete with smaller vendors on its platform.

An Amazon spokeswoman has since responded to these reports, saying that these warrant deals occur in less than one percent of all its commercial agreements, although she refused to disclosed exactly how many of these agreements the company has entered into and how much money it has made from them.

In other related news, a federal court has now dismissed the FTC’s antitrust lawsuit against Facebook.

Read Full Article

What to Read Next

Amazon Is Asking for the Keys to Your Building from Your Landlord
Tech

Amazon Is Asking for the Keys to Your Building from Your Landlord

Installing virtual keys all over the country to avoid leaving packages outside.

Amazon Contracts Reportedly Govern How Delivery Drivers Look, Smell and Tweet
Tech

Amazon Contracts Reportedly Govern How Delivery Drivers Look, Smell and Tweet

Even ones from outside contracting companies.

Jeff Bezos Officially Steps Down as CEO of Amazon
Tech 

Jeff Bezos Officially Steps Down as CEO of Amazon

He’s keeping busy with several other businesses and an upcoming spaceflight.


Amazon Hits Back at SpaceX With Rule-Breaking Allegations
Tech

Amazon Hits Back at SpaceX With Rule-Breaking Allegations

Elon Musk and Jeff Bezos’ battle continues.

Krispy Kreme Celebrates Fourth of July With Blue, Red and White Doughnuts
Food & Beverage

Krispy Kreme Celebrates Fourth of July With Blue, Red and White Doughnuts

Offering a series of special Original Glazed and KREME™-filled treats for the holiday.

Kataluna Enriquez Becomes First Transgender Woman Miss USA Pageant Contestant
Entertainment

Kataluna Enriquez Becomes First Transgender Woman Miss USA Pageant Contestant

After winning Miss Nevada USA last weekend.

Watch the First Trailer for 'Clifford the Big Red Dog'
Entertainment

Watch the First Trailer for 'Clifford the Big Red Dog'

A live-action adaptation of the classic children’s book.

Nikon's Z FC Mirrorless Camera Is a Throwback to 35mm Photography
Tech

Nikon's Z FC Mirrorless Camera Is a Throwback to 35mm Photography

Featuring a 20.9-megapixel sensor and 4K video recording capabilities.

Quavo Reveals Plans To Finish Unreleased Pop Smoke Collaborations
Music

Quavo Reveals Plans To Finish Unreleased Pop Smoke Collaborations

The Migos member previously confirmed that he was working with the late rapper prior to his death.


'Dragon Quest' and 'Evangelion' Expected To Be Part of Tokyo Olympics Opening Ceremony
Entertainment

'Dragon Quest' and 'Evangelion' Expected To Be Part of Tokyo Olympics Opening Ceremony

People catch pieces of rehearsals.

BTS Engages in Robot Dance-Off to Welcome Hyundai  and Boston Dynamics Acquisition
Tech

BTS Engages in Robot Dance-Off to Welcome Hyundai and Boston Dynamics Acquisition

Seven Spot robots also dance in unison to “Ioniq: I’m On It.”

Don Cheadle Hints That a New 'Ocean's' Film Could Happen
Entertainment

Don Cheadle Hints That a New 'Ocean's' Film Could Happen

Steven Soderbergh, who directed the original trilogy, could be making a return to the franchise.

Primavera Sound Festival to Debut in Los Angeles in 2022
Music

Primavera Sound Festival to Debut in Los Angeles in 2022

The beloved Barcelona music festival is setting up shop in America for the first time ever.

JUUL To Pay North Carolina $40 Million USD To Settle Vaping Lawsuit
Tech

JUUL To Pay North Carolina $40 Million USD To Settle Vaping Lawsuit

The lawsuit allegedly claimed that JUUL specifically designs and markets its products to young people.

More ▾
 
Subscribe to our Newsletter

Gain access to exclusive interviews with industry creatives, think pieces, trend forecasts, guides and more.

By subscribing, you agree to our Terms of Use and Privacy Policy.

Adblock Detected.

We charge advertisers instead of our readers. If you enjoy our content, please add us to your adblocker's whitelist. We'd really appreciated it.