Bezos standing down as CEO

[Tweek]

Hmm...

https://www.cnbc.com/2021/02/02/jeff-bezos-to-step-down-as-amazon-ceo-andy-jassy-to-take-over-in-q3.html

[okey dokey]

He is giving up as Amazon CEO.

Was anti monopoly probe the final straw?

[Jeff Tanyard]

Doesn't surprise me.  He's obviously been hands-off for a while.  And considering the drama in his personal life, I can't say I blame him.

I don't own shares of the company, but if I did, then this is what I would call a sell signal.

[Eric Thomson]

I guess it means he'll be running SPECTRE full-time.

[R. C.]

I guess it means he'll be running SPECTRE full-time.

I thought he was head poohbah of KAOS?

Cheers,
R.C.

Also: Fake digital credits to everyone who does not have to Googles poohbah and KAOS.

[Lorri Moulton [Lavender Lass Books]]

The man replacing him, Andy Jassy, is CEO of Amazon Web Services.  I wonder if this will impact authors at all...better, worse, or business as usual?

[Eric Thomson]

I guess it means he'll be running SPECTRE full-time.

I thought he was head poohbah of KAOS?

Cheers,
R.C.

Also: Fake digital credits to everyone who does not have to Googles poohbah and KAOS.

No need to get smart with us. Now, you tell me who Bezos really is:

[Tweek]

The guy replacing Bezos is someone called Jassy who has been running AWS, which didn't meet market expectations last quarter.

Being kicked upstairs and his departure letter bluntly stating he's not resigning has the hallmarks of a man who has been pushed.

Despite its overinflated share value Amazon's profits are very low for its revenue. I wouldn't pay well over 3,000 a share for their profit dividend, that's for sure. Amazon, like Tesla, is benefiting from a share market that chooses to excessively over value some companies to make money on the trading.

Maybe Bezos wants to run for President in 2024. Maybe the Board have decided they need to fix Amazon's profit margins. Maybe Bezos is sick and needs more control over his time.

Whatever the reason a change in CEO usually shakes things up, even if the guy has been a long term Amazon exec. I'm not sure how well KDP does financially. Probably not that well given Amazon's top level profit margins. And none of the other platforms have quit. Trad pub is alive and well. Amazon don't own or even control the book market.

Guess it's watch this space. It'd be nice if Amazon caught up with their competitors. They're really starting to fall behind.

Google and B&N offer 70% across the board and 30 day terms.
Google have immediate in-person support 24/7 where you can talk a skilled person online.
Google Ads have a account managers who talk to you on the phone (for any spend value as well).
Kobo have their own subscription service that isn't exclusive (it's based on time to read).

[PJ Post]

I predict a further tightening of the screws.

Isn't self-publishing fun?   

[notthatamanda]

I think if you asked Jassy what he planned to do about KDP now that he's in charge he'd need an assistant to slip him a note to tell him what KDP is.

[RPatton]

This announcement came out after their earnings, which were strong, and the news that there was a lot of money not paid out that should have been (audits, which is why we all got extra payments), which isn't good. These stories are all being buried by the announcement that he's leaving.

I actually don't think he got pushed out, I think he planned on leaving (he's not leaving to Q3). I also don't think he planned on announcing until Q2, but they needed a way to sink the bad stories and his departure is the way to do it.

[notthatamanda]

This announcement came out after their earnings, which were strong, and the news that there was a lot of money not paid out that should have been (audits, which is why we all got extra payments), which isn't good. These stories are all being buried by the announcement that he's leaving.

I actually don't think he got pushed out, I think he planned on leaving (he's not leaving to Q3). I also don't think he planned on announcing until Q2, but they needed a way to sink the bad stories and his departure is the way to do it.

Are you talking about the dividend?

[Luke Everhart]

Bezos isn't disengaging to meddle more in WaPo or dabble in politics. He's transitioning to the executive chairman position of the Zon.

https://www.wsj.com/articles/why-jeff-bezos-is-stepping-down-as-ceo-but-staying-on-as-executive-chairman-and-what-that-means-11612366771

[RPatton]

This announcement came out after their earnings, which were strong, and the news that there was a lot of money not paid out that should have been (audits, which is why we all got extra payments), which isn't good. These stories are all being buried by the announcement that he's leaving.

I actually don't think he got pushed out, I think he planned on leaving (he's not leaving to Q3). I also don't think he planned on announcing until Q2, but they needed a way to sink the bad stories and his departure is the way to do it.

Are you talking about the dividend?

No. The dividend is paid to shareholders, I they will always be paid.

Amazon had an independent audit, as all companies with a certain number of employees must have. The audit revealed 62 million (I think it was 62, too lazy to go and check) in tips not paid to drivers, the extra funds from KDP paid to authors, and I assume other areas where funds hung around in the ether until someone asked why they hadn't been paid out to the intended recipients.

[notthatamanda]

Not saying I don't believe you, but why would they have tips for drivers? Do you have a link for this? I thought you meant the dividend was stingy compared to the amount of revenue.

[Lorri Moulton [Lavender Lass Books]]

It's been all over Twitter.  Here's a link...

https://www.reuters.com/article/us-amazon-drivers-idUSKBN2A2241

[Jeff Tanyard]

Just FYI, Amazon doesn't pay a dividend.  They never have.  There has been grumbling about this for years, some from the shareholders and some from analysts.

RPatton, thanks for mentioning that "tips for drivers" thing.  I hadn't heard about it.  And thanks to Lorri for the link.

[notthatamanda]

It's been all over Twitter.  Here's a link...

https://www.reuters.com/article/us-amazon-drivers-idUSKBN2A2241

Thanks. I don't look at Twitter so I didn't see anything. I get it now. Customers adding tips to the balance of their order and Amazon not paying them. I would have assumed that was an option for Whole Foods delivery, but I never saw it as an option for regular stuff you order.

[PJ Post]

$62 million isn't even coffee money to Amazon. It's more like a rounding error.

[Anarchist]

$62 million isn't even coffee money to Amazon. It's more like a rounding error.

I've seen comments on Reddit vilifying Amazon for having some nefarious money-swiping scheme in play.

But I'm with you. Amazon is probably wondering "Hey, where'd this extra dime come from?"

[notthatamanda]

Only barely tangentially related comment - I saw a Ryder (logistics) commercial and they got a guy who's a dead ringer for Bezos in it. I had to rewind and then google if Amazon bought Ryder (no) cause I thought I had missed something.

[Lynn]

A good accounting system wouldn't leave that much money in limbo. Someone (or several someones more likely) isn't doing their job.

[Post-Crisis D]

A good accounting system wouldn't leave that much money in limbo. Someone (or several someones more likely) isn't doing their job.

Don't worry.  They'll probably get promoted. 

[Jeff Tanyard]

Only barely tangentially related comment - I saw a Ryder (logistics) commercial and they got a guy who's a dead ringer for Bezos in it. I had to rewind and then google if Amazon bought Ryder (no) cause I thought I had missed something.

I've thought for a while now that if Bezos ever went into acting, he'd make a great Lex Luthor.  He looks exactly like the character looks in my mind.

[RPatton]

$62 million isn't even coffee money to Amazon. It's more like a rounding error.

But it's not. Every penny must be accounted for. Even if it's a drop in a bucket, it's still a drop that has to be accounted for. Independent audits happen specifically to make sure every penny is accounted for and $62 millions is a lot of pennies to not be counted. Now, I doubt it was nefarious on Amazon's part, but I do think it's endemic of Bezo's attempts to scrape every penny from every point available. At some point SOP becomes a hazard to shareholders.

Plus, that 62 million might have been a drop in the bucket to Amazon, but that $20 in tip money might have been half a gas tank so a driver could grab more jobs so they could make $50 and buy groceries for the week.

The main point is that it's not Amazon's money. Just like the 70% or 35% isn't Amazon's money either. Better yet, what if Amazon implemented a Pay What You want system and what if someone paid $5 more than the average buyer for your book? Would you be okay with Amazon keeping that $5 from you because of an accounting mistake?

[LemoyneBaseballLeague]

Maybe he's stepping down to finally go full-time with his Bella Forrest brand.

[RPatton]

Maybe he's stepping down to finally go full-time with his Bella Forrest brand.

Well if he is, he's going about it in a weird way because one side filed in Washington and included Amazon... So he'd be suing his own company.

[LemoyneBaseballLeague]

Maybe he's stepping down to finally go full-time with his Bella Forrest brand.

Well if he is, he's going about it in a weird way because one side filed in Washington and included Amazon... So he'd be suing his own company.

The ultimate long con.

[RPatton]

Maybe he's stepping down to finally go full-time with his Bella Forrest brand.

Well if he is, he's going about it in a weird way because one side filed in Washington and included Amazon... So he'd be suing his own company.

The ultimate long con.

I admit, there's a little part of me who now wants "Amber" to be unmasked as Bezos. :)

[The Masked Scrivener]

[Tweek]

I've been chatting with people about the Bezos thing. I'm only posting this for fun rather than trying to convince anyone I can predict the future.

Here's a possible path...

AWS is the most profitable part of Amazon by a long mile. That's the only part of the business capable of paying a dividend on shares. It's possible they will split it from Amazon 'proper' with the intent of driving those shares up based on profit and dividend.

It's not uncommon for businesses to 'go back to core business' (that usually means their original profitable business, which Amazon don't really have because they've not been 'profitable' until very recently), in which case Amazon 'proper' may focus on some blend of their order/delivery business.

And the reason they announced the new CEO early is to try to stop the investors (stock value) from getting nervous and also to give him 'authority' to start preparing/designing for the changes he plans to make once he's in the job.

As for Bezos and his 'excite the customer' mantra...well, that's only viable if the ideas make money and Amazon profit is mostly propped up by AWS margins.