{"id":57625,"date":"2023-09-06T12:26:34","date_gmt":"2023-09-06T16:26:34","guid":{"rendered":"https:\/\/ifintechworld.com\/markets\/the-ftc-could-call-for-an-amazon-breakup-why-investors-should-celebrate\/"},"modified":"2023-09-06T12:26:37","modified_gmt":"2023-09-06T16:26:37","slug":"the-ftc-could-call-for-an-amazon-breakup-why-investors-should-celebrate","status":"publish","type":"post","link":"https:\/\/ifintechworld.com\/?p=57625","title":{"rendered":"The FTC Could Call for an Amazon Breakup. Why Investors Should Celebrate."},"content":{"rendered":"<div id=\"js-article__body\" itemprop=\"articleBody\" data-sbid=\"WP-BAR-0000736778\">\n<div data-layout=\"wrap\n              \" data-layout-mobile=\"\" class=\"\n        media-object\n        type-InsetMediaIllustration\n          wrap\n  article__inset\n        article__inset--type-InsetMediaIllustration\n          article__inset--wrap\n    article__inset--lead\n  \"><\/p>\n<p>        <!-- eventually when we know what this card will be we can change it and leave this one --><\/p>\n<figure class=\"\n        media-object-image\n        enlarge-image\n        img-wrap\n        article__inset__image\n      \" itemscope=\"\" itemtype=\"http:\/\/schema.org\/ImageObject\"><\/p>\n<\/figure><\/div>\n<p>\n        Amazon<br \/>\n       looks like it\u2019s about to be hit by an antitrust lawsuit from the Federal Trade Commission. That\u2019s not necessarily bad news for shareholders.\u00a0<\/p>\n<p>\n        Amazon<br \/>\n       (ticker: AMZN) didn\u2019t offer any concessions to the FTC in what could be the final talks before a lawsuit is filed against the online retailer, The Wall Street Journal reported, citing people familiar with the matter. The lawsuit is likely to suggest measures which could lead to a break up of the company, according to the WSJ.\u00a0<\/p>\n<div class=\"paywall\">\n<p>Amazon declined to comment on the report. <\/p>\n<p>Shareholders shouldn\u2019t worry too much \u2013 they might even celebrate the news. That\u2019s according to analysts at D.A. Davidson, who calculated that if Amazon were to be split up it could be worth between $148 and $193 a share.\u00a0<\/p>\n<p>The calculation was based on a scenario where Amazon is broken into three parts \u2013 its own retail operation, a third-party retail or marketplace platform, and its cloud-computing business. The analysts, led by Tom Forte, argued that could be better than keeping Amazon in its current form where it would increasingly struggle to achieve a 10% to 20% compound annual growth rate to maintain its premium valuation.\u00a0<\/p>\n<p>Other analysts have put Amazon\u2019s valuation at around $200 a share in a breakup scenario.\u00a0\u00a0\u00a0<\/p>\n<p>Amazon shares were down 0.7% at $136.38 on Wednesday.\u00a0\u00a0<\/p>\n<p>It\u2019s hardly the first time a breakup of Amazon has been mooted \u2013 <em>Barron\u2019s<\/em>\u00a0wrote about the possibility back in 2018. However, the FTC lawsuit could concentrate investors\u2019 minds on what would happen if Amazon is forced into the move rather than it being its own choice. <\/p>\n<p>If the FTC does press ahead with a lawsuit it will be a crucial test for the FTC under Chair Lina Khan, who first rose to prominence after writing a law-review article while a student at Yale Law School that argued that antitrust law had failed to restrain Amazon.<\/p>\n<p>However, the FTC under Khan has suffered a series of legal defeats in antitrust cases, including its recent loss in a bid to block<br \/>\n        Microsoft<span>\u2019s<\/span><br \/>\n       (MSFT) $69 billion deal to purchase<br \/>\n        Activision Blizzard<br \/>\n       (ATVI). Amazon has previously sought Khan\u2019s recusal from investigations of the company. <\/p>\n<p>A breakup wouldn\u2019t be a simple task. D.A. Davidson\u2019s Forte suggested the period of distraction could last more than a decade, based on previous complex company separations. However, he noted that both Google-parent<br \/>\n        Alphabet<br \/>\n       (GOOGL) and<br \/>\n        Facebook<br \/>\n      -owner Meta Platforms (META) shares have performed well while being sued for antitrust by the government.\u00a0<\/p>\n<p>Write to Adam Clark at adam.clark@barrons.com<\/p>\n<\/p><\/div>\n<\/div>\n<p>Read the full article <a href=\"https:\/\/www.marketwatch.com\/articles\/amazon-stock-breakup-ftc-valuation-antitrust-163a9be?mod=markets\" target=\"_blank\" rel=\"noopener\">here<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Amazon looks like it\u2019s about to be hit by an antitrust lawsuit from the Federal Trade Commission. That\u2019s not necessarily bad news for shareholders.\u00a0 Amazon (ticker: AMZN) didn\u2019t offer any concessions to the FTC in what could be the final talks before a lawsuit is filed against the online retailer, The Wall Street Journal reported, [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":57626,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"gallery","meta":{"footnotes":""},"categories":[241],"tags":[83],"class_list":["post-57625","post","type-post","status-publish","format-gallery","has-post-thumbnail","hentry","category-markets","tag-featured","post_format-post-format-gallery"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v20.6 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>The FTC Could Call for an Amazon Breakup. 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