Amazon buying fedex.. Whaaat!

FedGT

Well-Known Member
If M&A activity overall starts picking up the likelihood of a bid for X becomes more likely. Rate concessions and same day delivery is clearly what Bezos wants. If he doesn't get a satisfactory deal then his billions combined with a hedge fund or two makes a hostile takeover bid possible . I don't think that something of this nature is imminent but in a few years when corporate bylaws require Smith to leave the board you can't rule it out. A cash and stock swap combined with a partial spin off into a new public trading company with Amazon or whoever controlling 51% cannot be dismissed outright . In the meantime button your chin straps.

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.
 

bacha29

Well-Known Member
Laugh if you want to but I wouldn't given that in it's latest 10K filing Amazon describes itself as a "transportation service provider" and lists it's need to procure favorable shipping rates as a critical component in it's profitability.
 

TUT

Well-Known Member
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.
 

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!
Then that means letting go of every other division. Does Amazon really want the publicity of knowing they gutted an entire corp. and fired a couple hundred thousand people?

If Amazon gave a rat's rear end about bad publicity, it would treat its employees better.
 

59 Dano

I just want to make friends!
If M&A activity overall starts picking up the likelihood of a bid for X becomes more likely. Rate concessions and same day delivery is clearly what Bezos wants. If he doesn't get a satisfactory deal then his billions combined with a hedge fund or two makes a hostile takeover bid possible . I don't think that something of this nature is imminent but in a few years when corporate bylaws require Smith to leave the board you can't rule it out. A cash and stock swap combined with a partial spin off into a new public trading company with Amazon or whoever controlling 51% cannot be dismissed outright . In the meantime button your chin straps.

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!
 

59 Dano

I just want to make friends!
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.

No fair, using clear thinking and such!
 

bbsam

Moderator
Staff 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...
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"?
 

bacha29

Well-Known Member
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
 

FedGT

Well-Known Member
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 :censored2: 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.
 

vantexan

Well-Known Member
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!
Still smarting over the annuity debacle? :)
 

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.
 

bacha29

Well-Known Member
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.
 
Top